Bitcoin News Today: U.S. Bank Reclaims Crypto Custody as Regulations Shift

The U.S. banking system has taken a significant step toward formal engagement with the cryptocurrency sector as U.S. Bank announced the resumption of Bitcoin custody services for institutional investment managers. This move, reintroducing a service first offered in 2021 and later paused in 2022, reflects a shift in the regulatory landscape under the Trump administration. U.S. Bank has partnered with NYDIG, a Bitcoin-focused financial infrastructure provider, to serve as a sub-custodian for digital assets, expanding its offerings to include support for Bitcoin ETFs as well [3].

This development underscores the growing institutional interest in digital assets and comes amid a broader trend of easing regulatory constraints. In August 2025, the Federal Reserve officially ended its supervisory program for digital asset-related activities, a move that critics had previously labeled as “crypto debanking.” The decision, combined with clearer guidelines for Bitcoin ETFs, has encouraged traditional financial institutions to re-engage with the cryptocurrency market [5]. U.S. Bank now offers secure custody solutions for its clients, which include institutional investment managers with registered or private funds seeking safekeeping for Bitcoin [3]. With over $11.7 trillion in assets under custody and administration, U.S. Bank is positioning itself to meet the rising demand for digital asset-related services [3].

The bank’s renewed focus on cryptocurrency custody aligns with a broader institutional adoption of Bitcoin. In recent months, Bitcoin ETFs have experienced significant inflows, often outpacing the supply of newly mined Bitcoin. This trend has created a tighter supply dynamic and increased demand for secure, regulated custody options [5]. U.S. Bank’s move places it in direct competition with other major institutions like BNY Mellon and State Street, both of which have also expanded their digital asset offerings [5]. The resumption of custody services by U.S. Bank signals a strategic pivot to accommodate institutional clients seeking exposure to digital assets within a regulated framework [4].

The broader U.S. financial sector is witnessing increased activity as traditional banks and FinTech firms explore deeper integration. U.K.-based FinTechs such as Revolut and Starling have also accelerated plans to acquire U.S. banks to expand their lending capabilities, capitalizing on a regulatory environment that appears more favorable under the Trump administration [6]. Meanwhile, the Federal Reserve has shifted its focus toward payments innovation, planning a conference in October 2025 to explore advancements in the payments system, including the convergence of traditional and decentralized finance [2]. This event reflects the central bank’s recognition of the importance of digital innovation in the evolving financial landscape.

The resumption of cryptocurrency custody services by U.S. Bank, alongside regulatory easing and rising institutional demand, points to a maturing market where digital assets are increasingly being integrated into traditional financial systems. As banks like U.S. Bank continue to refine their offerings, the role of cryptocurrency in institutional portfolios is expected to expand, supported by improved regulatory clarity and infrastructure partnerships.

Source:

[1] title1 (https://www.investopedia.com/job-report-seals-federal-reserve-interest-rate-cut-in-september-11804268)

[2] title2 (https://www.federalreserve.gov/newsevents/pressreleases/other20250903a.htm)

[3] title3 (https://ir.usbank.com/news-events/news/news-details/2025/U-S--Bank-Resumes-Bitcoin-Cryptocurrency-Custody-Services-for-Institutional-Investment-Managers/default.aspx)

[4] title4 (https://www.coindesk.com/business/2025/09/03/u-s-bank-resumes-bitcoin-custody-services-adds-support-for-etfs)

[5] title5 (https://thecurrencyanalytics.com/bitcoin/us-bank-resumes-bitcoin-custody-as-regulatory-barriers-ease-194801)

[6] title6 (https://www.pymnts.com/acquisitions/2025/uk-fintechs-eye-us-bank-purchases-amid-easing-regulations/)