Bitcoin News Today: Institutional Investors Get New Crypto Safe Haven as U.S. Bank Revives Custody Services

U.S. Bank has resumed its cryptocurrency custody services for institutional investment managers, marking a significant step in the bank’s re-engagement with digital assets. The services, first introduced in 2021, were halted in 2022 due to regulatory challenges but are now available again, with an expanded offering that includes bitcoin exchange-traded funds (ETFs). This move aligns with the broader trend of financial institutions adapting to the evolving regulatory landscape and growing demand for digital asset services among institutional investors [2].

The custody program is designed for institutional investment managers who hold registered or private funds and seek secure storage for bitcoin. NYDIG, a vertically integrated financial services firm focused on bitcoin infrastructure and power, will serve as the sub-custodian, handling the actual safekeeping of the underlying asset. U.S. Bank, acting as the client-facing intermediary, will provide oversight and administrative support. This arrangement allows clients to benefit from the stability of a major banking institution while leveraging NYDIG’s specialized crypto infrastructure [4].

Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, emphasized the strategic importance of this service, noting that U.S. Bank was among the first banks to offer cryptocurrency custody in 2021. He stated that the recent regulatory clarity has enabled the bank to expand its services to include bitcoin ETFs, thereby offering a comprehensive solution for institutional clients managing these types of assets [2]. This expansion supports the growing appetite for bitcoin ETFs, which have gained significant traction since their authorization in early 2025.

Tejas Shah, CEO of NYDIG, highlighted the partnership as an opportunity to bridge traditional finance and the modern economy. He noted that the collaboration ensures clients receive institutional-grade security and reliability in their digital asset holdings [4]. NYDIG’s infrastructure supports bitcoin’s proof-of-work security model and leverages low-cost energy to enhance operational efficiency, positioning it as a key player in the evolving crypto finance sector [4].

The resumption of U.S. Bank’s custody services reflects a broader industry shift as traditional financial institutions increasingly explore crypto-related offerings. Following the repeal of the SEC’s 2022 accounting guidance, which had discouraged banks from offering custody services due to capital constraints, several institutions have signaled interest in re-entering the market. For example, Citigroup is reportedly evaluating custody services for digital assets, and other banks are also assessing their capacity to serve emerging crypto investment products [3].

With over $11.7 trillion in assets under custody and administration as of June 30, 2025, U.S. Bank’s institutional division is well-positioned to accommodate the rising demand for secure digital asset storage. The bank’s approach to digital innovation, combined with its reputation for customer service and ethical business practices, has helped solidify its position in the competitive financial services landscape [2]. The expansion of its services to include bitcoin ETFs further demonstrates U.S. Bank’s commitment to adapting to client needs in a rapidly changing market.

The timing of U.S. Bank’s announcement also coincides with a surge in institutional interest in bitcoin, driven in part by the recent authorization of spot ETFs. These products have attracted a broad range of investors, with BlackRock’s iShares Bitcoin Trust emerging as the largest, boasting a market capitalization exceeding $80 billion [3]. The bank’s move to support these products reflects a strategic alignment with current market dynamics and client preferences.

Source: [1] U.S. Bancorp to Speak at the Barclays Global Financial Services Conference (https://ir.usbank.com/news-events/news/news-details/2025/U-S--Bancorp-to-Speak-at-the-Barclays-Global-Financial-Services-Conference/default.aspx) [2] 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) [3] US Bancorp revives institutional bitcoin custody service (https://finance.yahoo.com/news/us-bancorp-revives-institutional-bitcoin-120523648.html) [4] U.S. Bank Resumes Bitcoin Custody Services, Adds ETF (https://www.stocktitan.net/news/USB/u-s-bank-resumes-bitcoin-cryptocurrency-custody-services-for-tzd5vse961ac.html)