Bitcoin News Today: Institutional Investors Get Secure BTC Custody Bridge to ETFs via U.S. Bank

U.S. Bank has resumed offering cryptocurrency custody services for institutional investment managers, expanding the program to include support for bitcoin ETFs. Announced on September 3, 2025, the service is part of an early access initiative targeting Global Fund Services clients, with NYDIG designated as the sub-custodian for digital assets. The move follows a pause in 2022 and is driven by increasing regulatory clarity, allowing the bank to enhance its digital asset solutions across its $11.7 trillion in assets under custody and administration [2].

The custody services are tailored for institutional clients seeking secure storage for bitcoin and are intended to provide comprehensive solutions for fund managers requiring both custody and administration services. Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, emphasized the bank’s pioneering role in offering cryptocurrency custody since 2021 and expressed enthusiasm about the expansion to include ETFs. “We are excited to resume the service this year,” he said, highlighting the strategic importance of the offering in the evolving digital asset landscape [2].

NYDIG, a key player in the bitcoin ecosystem, will facilitate the custody operations through its regulated platform. Tejas Shah, CEO of NYDIG, noted the partnership’s potential to bridge traditional finance with the modern economy by delivering secure access to bitcoin for institutional clients. “Together, we can bridge the gap between traditional finance and the modern economy by facilitating access to bitcoin as sound money,” he stated, underscoring the collaborative effort to meet the growing demand for institutional-grade digital asset services [2].

The expansion of U.S. Bank’s custody offerings aligns with broader industry trends, particularly the increasing institutional adoption of bitcoin. As regulatory frameworks continue to develop, the bank’s move reflects confidence in the long-term viability of digital assets and their integration into mainstream finance. With U.S. Bank managing over $11.7 trillion in assets under custody and administration, the addition of bitcoin custody services underscores the bank’s commitment to innovation and client needs in the digital finance sector [2].

The resumption of custody services comes amid a surge in institutional demand for bitcoin, driven by the success of spot ETFs and growing interest from wealth and corporate banking clients. The integration of ETFs into the custody framework is expected to streamline the investment process for institutional managers, offering a secure and compliant environment for managing bitcoin exposures. This development is significant in a market where ETF inflows have continued to drive price momentum, with the total assets under management in Bitcoin ETFs reaching $141.75 billion [1].

As the digital asset market continues to mature, U.S. Bank’s decision to re-enter the custody space signals a broader acceptance of bitcoin as a legitimate asset class. The bank’s extensive experience in wealth and institutional banking, combined with NYDIG’s expertise in digital asset infrastructure, positions the partnership as a key player in the expanding institutional crypto landscape. With the global financial ecosystem increasingly adopting digital assets, U.S. Bank’s expanded custody offering represents a strategic step toward meeting the evolving needs of institutional investors seeking to diversify their portfolios with bitcoin [2].

Source:

[1] Bitcoin ETF Inflows: BTC-USD Climbs Back Above $111K as ... (https://www.tradingnews.com/news/bitcoin-etf-inflows-push-btc-usd-to-111k-usd-with-1-47m-coins)

[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)