Bitcoin News Today: Bitcoin Custody Gets a Bank-Backed Boost as Regulations Shift

U.S. Bancorp has relaunched its cryptocurrency custody services for institutional investment managers, marking a significant return to the digital asset space following a pause in 2022. The offering, introduced in 2021 in partnership with NYDIG, now includes support for Bitcoin ETFs, broadening the scope of institutional-grade custody solutions. U.S. Bank, which operates as a subsidiary of U.S. Bancorp, has expanded the service through its Global Fund Services division, initially targeting registered funds and ETF providers that invest in Bitcoin [1].

The decision to resume custody services is attributed to evolving regulatory clarity in the U.S. A 2022 Securities and Exchange Commission (SEC) guidance requiring custodians to hold capital for crypto-related activities was rescinded shortly after President Donald Trump assumed office this year. Additionally, the Office of the Comptroller of the Currency announced in March 2025 that banks can offer custody for digital assets without needing prior approval, creating a more favorable environment for traditional financial institutions to re-enter the market [2].

NYDIG, a vertically integrated Bitcoin financial services and power infrastructure firm, is serving as the sub-custodian for U.S. Bank’s Bitcoin custody operations. Tejas Shah, CEO of NYDIG, emphasized the partnership's role in bridging traditional finance and the modern economy, stating that institutional-grade safeguards would be applied to Bitcoin custody. U.S. Bank’s approach aims to provide secure and regulated solutions for institutional clients seeking exposure to digital assets while maintaining compliance with evolving financial regulations [3].

Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, highlighted the bank’s leadership in the space, noting that U.S. Bank was among the first to offer cryptocurrency custody for institutional clients in 2021. The relaunched offering is part of a broader strategy to expand digital asset solutions across U.S. Bank’s $11.7 trillion in assets under custody and administration. The bank is also evaluating other cryptocurrencies for potential inclusion in its custody services, provided they meet its internal standards [1].

The digital assets custody market has historically been dominated by crypto-native firms, but the recent regulatory shifts are encouraging larger financial institutions to explore or re-enter the space. Competitors such as Bank of New York Mellon Corp. and Fidelity Investments already offer similar services, and Citigroup has indicated an interest in expanding its own offerings. The competitive landscape is expected to intensify as more institutions seek to meet growing demand for institutional-grade custody solutions in the digital asset sector [4].

The return of major banks to the cryptocurrency custody market is viewed as part of a broader shift in U.S. financial policy under the current administration. The rescission of restrictive guidance and the government’s broader initiative to position the U.S. as a global leader in digital assets have contributed to renewed interest in the sector. This regulatory environment is likely to foster increased innovation and collaboration between traditional financial institutions and crypto infrastructure providers like NYDIG [2].

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] 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)

[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)

[4] US Bancorp to offer Bitcoin Custody Services Again as Regulatory Environment Shifts (https://finance.yahoo.com/news/us-bancorp-offer-bitcoin-custody-171201540.html)