Bitcoin News Today: Bitcoin’s Institutional Comeback, Backed by U.S. Bank’s Custody Return

U.S. Bank has reinitiated its cryptocurrency custody services for institutional clients, with a renewed focus on bitcoin. The offering, initially launched in 2021 and paused in 2022, is now available as an early access program through the bank’s Global Fund Services division. The service is aimed at institutional investment managers with registered or private funds seeking a secure custody solution for bitcoin assets. The bank has partnered with NYDIG, a vertically integrated firm specializing in bitcoin financial and power infrastructure, to serve as the sub-custodian for the cryptocurrency [1].

The resumption of these services follows a period of heightened regulatory clarity and marks a strategic expansion of U.S. Bank’s digital asset offerings. This includes the addition of bitcoin ETFs to the custody framework, allowing the bank to offer a more comprehensive suite of services for institutional clients managing digital assets. Stephen Philipson, vice chair of U.S. Bank’s Wealth, Corporate, Commercial, and Institutional Banking, emphasized the bank’s commitment to innovation and digital finance, noting that the offering complements the bank’s long-standing leadership in alternative investment solutions [1].

NYDIG’s role as sub-custodian underscores its expertise in institutional-grade bitcoin custody and execution. Tejas Shah, CEO of NYDIG, described the partnership as an opportunity to connect traditional finance with modern economic systems by providing secure and regulated access to bitcoin for institutional investors. The collaboration aligns with the growing institutional interest in digital assets, particularly as the market continues to evolve with the introduction of regulated products like spot bitcoin ETFs [1].

U.S. Bank’s custody division, which manages over $11.7 trillion in assets under custody and administration as of June 30, 2025, offers a range of services including ETFs, fund custody, fund administration, and wealth management. This expansion into bitcoin custody reflects the bank’s broader digital innovation strategy and its ongoing exploration of digital assets as tools to enhance client solutions. Dominic Venturo, senior executive vice president and chief digital officer at U.S. Bank, highlighted the potential for digital finance to unlock new opportunities for institutional investors while reinforcing the bank’s position as a leader in the sector [1].

The return of U.S. Bank’s bitcoin custody service comes amid a dynamic market environment for digital assets. Recent data indicates a resurgence of inflows into spot bitcoin ETFs, with over $332.7 million in net inflows reported in a single day, compared to outflows in Ethereum-based ETFs. Fidelity’s FBTC and BlackRock’s IBIT led the inflows, attracting significant capital from institutional investors. This trend reflects a broader rotation back to bitcoin, particularly as global macroeconomic uncertainty drives demand for perceived safe-haven assets [2].

The strategic timing of U.S. Bank’s move aligns with the market’s renewed interest in bitcoin as a digital store of value, particularly in the wake of regulatory developments that have enhanced the credibility and accessibility of digital assets. With its robust institutional infrastructure and extensive experience in custody services, U.S. Bank is positioned to support the growing demand for secure and regulated solutions in the bitcoin market. This initiative also complements the bank’s broader digital innovation agenda, as it continues to explore new ways to serve clients in the evolving financial landscape [1].

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] Bitcoin ETFs Pull $332.7M in a Day as Ethereum Sees $135M (https://finance.yahoo.com/news/bitcoin-etfs-pull-332-7m-104009462.html)