Bitcoin News Today: Regulatory Shifts Empower U.S. Bank to Reclaim Crypto Custody Role

U.S. Bancorp has resumed its cryptocurrency custody services for institutional investment managers, marking a renewed entry into the digital asset space after regulatory shifts have eased constraints on traditional financial institutions. The Minneapolis-based bank, which had previously announced its custody services in 2021, now offers the service as an early access program for Global Fund Services clients. The expanded offering now includes Bitcoin ETFs, allowing the bank to provide full-service solutions for managers seeking custody and administration services. NYDIG, a vertically integrated Bitcoin financial services firm, serves as the sub-custodian, managing the secure storage of Bitcoin assets on behalf of U.S. Bank clients [1].

The decision to relaunch the service follows regulatory changes under the Trump administration, which saw the repeal of a 2022 U.S. Securities and Exchange Commission (SEC) guidance that had made crypto custody capital-intensive for banks. Stephen Philipson, head of U.S. Bank’s Wealth, Corporate, Commercial, and Institutional Banking, noted that the updated regulatory environment has provided clarity and enabled the bank to scale its services as demand for digital assets grows. The bank is also exploring how digital assets might integrate into other areas, such as wealth management and consumer payments [2].

U.S. Bancorp is not alone in its move. Other major financial institutions, including Bank of New York Mellon and Fidelity Investments, have also launched or expanded their digital asset custody services. The Office of the Comptroller of the Currency recently issued a statement allowing banks to offer crypto custody services without requiring prior regulatory approvals, further encouraging traditional financial institutions to enter the market. With the U.S. ascending in global crypto adoption rankings, banks are positioning themselves to capture a growing share of the institutional market [3].

U.S. Bank’s custody services are designed for institutional clients, including registered investment managers and private funds, and currently focus on Bitcoin. However, the bank has stated that it may expand to include other cryptocurrencies that meet its internal risk and compliance standards. Dominic Venturo, U.S. Bank’s Chief Digital Officer, emphasized that the expansion of digital capabilities creates opportunities to deliver innovative solutions, reinforcing the bank’s commitment to digital finance [1]. The bank currently manages over $11.7 trillion in assets under custody and administration, reflecting its robust infrastructure for handling diverse financial products.

In the broader market, crypto-native firms like Coinbase, BitGo, and Anchorage Digital have dominated the custody space. However, regulatory clarity and pro-crypto policies are shifting the competitive landscape, allowing traditional banks to re-enter and compete. The U.S. crypto custody market is expected to grow significantly in the coming years, driven by increasing institutional adoption and the proliferation of digital asset investment products. With major banks like Citigroup and Deutsche Bank also exploring custody services, the sector is poised for continued expansion [4].

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. Bancorp joins Fidelity, BNY Mellon in crypto custody ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1093007-20250904)

[4] U.S. Bancorp Resumes Bitcoin Custody For Institutional ... (https://stocktwits.com/news-articles/markets/equity/us-bancorp-resumes-bitcoin-custody-for-institutional-clients/chwTUUhRd8N)