U.S. Bank partners with NYDIG to offer bitcoin custody services
October 5, 2021, 2:08PM EDT
1 min read
U.S. Bank is now offering crypto custody services to its institutional clientele in the U.S. or Cayman Islands.
Private funds can currently keep their bitcoin with the bank, according to today's announcement. Support for more coins will be added in the future.
NYDIG is the first sub-custodian partnership the bank has announced, though it's building a network of providers. NYDIG topped the list due to its history navigating compliance and regulatory standards in the space, according to the announcement.
Gunjan Kedia, vice chair of U.S. Bank Wealth Management and Investment Services, said investor demand for crypto offerings has exploded in recent years.
"Our fund and institutional custody clients have accelerated their plans to offer cryptocurrency and, in response, we made it a priority to accelerate our ability to offer custody services," she said in today's announcement.
Within its custody offerings, the bank will enable private key storage for bitcoin, bitcoin cash and litecoin, according to a report from CNBC.
U.S. Bank's decision to custody follows a number of other banks getting in on crypto. State Street is building out a new crypto unit, while Bank of New York Mellon is set to launch custody services this year.
U.S. Bank first announced it would roll out bitcoin custody services in April of this year. At the time, the bank referenced the clarity that then-Comptroller Brian Brooks had provided, authorizing national banks to custody crypto.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.