US Bancorp Re-Enters Cryptocurrency Custody Services Amid Regulatory Shifts

US Bancorp, the fifth-largest bank in the US, has reopened its cryptocurrency custody services after a four-year hiatus, citing changes in the US regulatory environment. The bank is working with NYDIG to offer custody services for Bitcoin, starting with traditional registered funds and ETFs, and plans to explore other cryptocurrency service offerings. This resurgence in cryptocurrency interest from traditional financial institutions is attributed to regulatory changes under the current US administration.

US Bancorp, the fifth-largest bank in the United States, has resumed its cryptocurrency custody services after a four-year hiatus. The move comes amidst significant changes in the US regulatory environment, which have facilitated the bank's reentry into the crypto market. The bank is partnering with NYDIG to provide custody services for Bitcoin, initially targeting traditional registered funds and Bitcoin exchange-traded funds (ETFs). The bank aims to explore additional cryptocurrency services in the future.

The decision to reopen the crypto custody service was driven by new regulatory clarity from the Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC). The SEC rescinded its previous guidance, which required custodians to hold capital on balance sheets for crypto activities, through Staff Accounting Bulletin No. 122. This change has eased accounting challenges for banks and financial institutions, encouraging the expansion of crypto custody services [1].

US Bancorp's reentry into the crypto custody market aligns with the broader trend of traditional financial institutions embracing digital assets. The bank's CEO, Gunjan Kedia, noted during the Morgan Stanley US Financials Conference in June that while custody focuses on crypto investment, the current trend is shifting toward payments and stablecoins [2]. The bank is actively exploring these use cases through pilots and potential partnerships.

The Minneapolis-based commercial bank is set to offer custody services for Bitcoin, starting with a handful of traditional registered funds and Bitcoin ETFs. The decision to support Bitcoin ETFs reflects the growing institutional demand for secure handling of Bitcoin funds. Data from Blockworks Research shows that Bitcoin products account for nearly 70% of total inflows into crypto ETFs, with BlackRock's iShares Bitcoin Trust leading the market [3].

The resumption of crypto custody services by US Bancorp is a significant development in the digital asset sector. It brings the bank in line with peers such as BNY Mellon and State Street, which also offer regulated digital asset custody. This move is expected to spur more activity from large firms, as refreshed guidelines from US regulators under the current administration are anticipated to drive further growth in the digital assets custody sector [2].

The bank's decision to resume crypto custody services highlights the evolving regulatory landscape and the growing acceptance of cryptocurrencies within the traditional financial system. As institutional demand for secure crypto custody solutions continues to grow, US Bancorp's reentry into the market is likely to have a substantial impact on the digital asset ecosystem.

References:
[1] https://cryptobriefing.com/us-bancorp-bitcoin-custody-services/
[2] https://www.bloomberg.com/news/articles/2025-09-03/u-s-bancorp-resumes-crypto-custody-as-regulators-clear-path
[3] https://blockworks.co/news/us-bancorp-resumes-bitcoin-custody