U.S. Bancorp Revives Bitcoin Custody Service Amid Regulatory Easing

US Bancorp has resumed its bitcoin custody service after a three-year pause, citing deregulations under the Trump administration. The service, originally launched in 2021, was paused due to a 2022 SEC bulletin that made it capital-intensive for banks to act as custodians of crypto assets. With the bulletin rescinded, US Bancorp will offer custody services for Bitcoin through traditional registered funds and exchange-traded funds before expanding to other crypto offerings.

Title: U.S. Bancorp Resumes Bitcoin Custody Service Amid Deregulations

U.S. Bancorp (USB) has resumed its bitcoin custody service after a three-year hiatus, citing the easing of regulatory conditions under the Trump administration. The service, initially launched in 2021, was paused following a 2022 SEC bulletin that made it capital-intensive for banks to act as custodians of crypto assets [1].

The SEC rescinded the 2022 bulletin in January 2025, which acted as a catalyst for U.S. Bancorp to reintroduce its long-paused bitcoin custody service. The bank's bitcoin custody service will primarily cater to institutional investment managers with registered or private funds, looking for a secure safekeeping solution for bitcoin. NYDIG, a vertically integrated bitcoin financial services and power infrastructure firm, will act as the bitcoin sub-custodian [1].

U.S. Bancorp will initially offer custody services for Bitcoin through traditional registered funds and exchange-traded funds (ETFs) before expanding to other crypto offerings. Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, stated, “We’re proud that we were one of the first banks to offer cryptocurrency custody for fund and institutional custody clients back in 2021, and we’re excited to resume the service this year. Following greater regulatory clarity, we’ve expanded our offering to include bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services” [1].

U.S. Bancorp’s shares have gained 8.7% in the past six months compared to the industry’s growth of 12.2%, and at present, USB carries a Zacks Rank #3 (Hold) [1].

The move by U.S. Bancorp reflects a broader trend among major U.S. banks to explore cryptocurrency services. Citigroup (C), The Bank of New York Mellon (BK), and BlackRock (BLK) have also shown interest in cryptocurrency services, driven by the Trump administration’s pro-crypto stance and the removal of restrictive regulations [1].

Bitcoin ETFs have gained significant popularity, with over a dozen asset managers launching ETFs tracking the spot price of Bitcoin since the SEC authorized such products last January. The largest Bitcoin ETF, BlackRock's iShares Bitcoin Trust (IBIT), has a market capitalization of over $80 billion [1].

The rebranding of U.S. Bancorp is indicative of the growing acceptance of cryptocurrencies in traditional finance. As the value of Bitcoin continues to increase and the number of investors grows, banks see an opportunity to serve this market. U.S. Bancorp’s collaboration with NYDIG sets it up to compete with other banks in the crypto custody arena [1].

References:
[1] https://finviz.com/news/157984/usb-resumes-institutional-bitcoin-custody-service-amid-deregulations
[2] https://www.reuters.com/sustainability/boards-policy-regulation/us-bancorp-revives-institutional-bitcoin-custody-service-2025-09-03/
[3] https://www.livebitcoinnews.com/u-s-bancorp-restarts-crypto-custody-service-after-sec-rule-change/