Bitcoin News Today: U.S. Bank Reopens Crypto Doors as Regulators Shift Gears

U.S. Bank has resumed offering cryptocurrency custody services for institutional investment managers, marking a return to digital asset solutions more than three years after initially pausing the program. The services, announced as an early access offering through U.S. Bank’s Global Fund Services division, are now available to registered and private fund managers seeking secure safekeeping solutions for bitcoin. This includes support for bitcoin ETFs, expanding the bank’s ability to provide comprehensive custody and administration services to institutional clients [1].

The custody offering was first introduced in 2021 but was halted in 2022 due to regulatory constraints, particularly an SEC guidance that required banks to hold capital on their balance sheets for such activities. With the recent repeal of this guidance under the new administration, U.S. Bank has leveraged the regulatory clarity to relaunch its services. NYDIG, a vertically integrated bitcoin financial services and power infrastructure firm, acts as the sub-custodian, managing the underlying asset while U.S. Bank serves as the client-facing intermediary [2].

Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, emphasized the significance of the move, noting that U.S. Bank was among the first traditional banks to offer crypto custody in 2021. The expansion to include ETFs is a strategic response to growing demand, particularly as bitcoin’s price has surged and a dozen or more spot ETFs have launched since the SEC approved such products last year [3]. The largest of these, BlackRock’s iShares Bitcoin Trust, has attracted significant assets, exceeding $80 billion in market capitalization [4].

Tejas Shah, CEO of NYDIG, highlighted the partnership as an opportunity to bridge traditional finance and the digital economy, ensuring institutional-grade security and compliance. The collaboration is expected to facilitate broader access to bitcoin for institutional clients, supporting the growing intersection of digital assets and traditional financial services [5].

U.S. Bank’s custody division, which manages over $11.7 trillion in assets under custody and administration, has been actively exploring digital asset solutions. The relaunch aligns with the bank’s broader digital innovation strategy, which includes expanding services in wealth management, fund administration, and corporate trust. The bank is also evaluating additional use cases for cryptocurrencies and stablecoins across its business lines [6].

The regulatory environment for digital assets has shifted significantly in 2025, with the Office of the Comptroller of the Currency allowing banks to engage in digital asset custody without prior approval. This shift has encouraged other major institutions, such as BNY Mellon and Fidelity, to explore or expand their crypto offerings. However, the custody market is largely dominated by crypto-native firms like Coinbase and Anchorage Digital, with the latter being the only custodian to hold a federal trust bank charter [7].

U.S. Bank has not ruled out expanding custody to other cryptocurrencies if they meet its risk and compliance standards. The bank’s cautious but deliberate approach reflects a broader industry trend, where traditional financial institutions are increasingly integrating digital assets into their service portfolios while maintaining a focus on regulatory compliance and risk management [8].

Source:

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

[2] US Bancorp revives institutional bitcoin custody service (https://finance.yahoo.com/news/us-bancorp-revives-institutional-bitcoin-120523648.html)

[3] U.S. Bank Resumes Bitcoin (BTC) Custody Services, Adds Support for ETFs (https://www.coindesk.com/business/2025/09/03/u-s-bank-resumes-bitcoin-custody-services-adds-support-for-etfs)

[5] U.S. Bank Resumes Bitcoin Cryptocurrency Custody ... (https://www.barchart.com/story/news/34565000/u-s-bank-resumes-bitcoin-cryptocurrency-custody-services-for-institutional-investment-managers)

[7] U.S. Bancorp Resumes Crypto Custody as Regulators Clear Path (https://www.bloomberg.com/news/articles/2025-09-03/u-s-bancorp-resumes-crypto-custody-as-regulators-clear-path)