US Bank has announced that it will commence providing custody of digital assets. Last year, all banks received clarity from the Office of the Comptroller of the Currency when the regulator published a letter outlining the ability for chartered banks to handle cryptocurrency. At that time, acting Comptroller of the Currency Brian P. Brooks, commented:
“From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today. This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
Yesterday, US Bank said they are launching three new crypto initiatives due to demand:
- New products and services: U.S. Bank Global Fund Services will offer a new cryptocurency custody product for customers with the engagement of a sub-custodian for fund servicing. We are finalizing our sub-custodian selection and will announce additional details in the coming weeks once internal reviews are final.
- Strategic relationships: We recently announced our investment in Securrency – a developer of institutional-grade blockchain-based financial and regulatory technology, which named U.S. Bank among investors in its latest round of funding.
- Client wins in cryptocurrency space: U.S. Bank has been selected to administer NYDIG’s ETF bitcoin fund this year, pending regulatory approvals. It expands on the bank’s long-standing private fund servicing relationship with NYDIG.
Christine Waldron, Chief Strategy Officer for US Bank Global Fund Services, stated:
“I am proud of how we came together from all areas of bank and brought forward our best thinking across our digital capabilities, product development, and technology to drive innovation in our Blockchain and Cryptocurrency practice. We’ve been active in this space for years – ensuring we are always best situated to serve our institutional clients – and these latest initiatives demonstrate our ongoing commitment and enthusiasm to grow this market.”
The bank said that cryptocurrency will be a focus of their Investment Services Consultant Day scheduled for May 7. Members of the U.S. Bank Blockchain and Cryptocurrency Practice will be featured at the event.