U.S. Bank is bringing back cryptocurrency custody services for institutional investment managers, a move that highlights how digital assets are becoming more integrated into traditional finance.
The bank is relaunching support for bitcoin and bitcoin exchange-traded funds (ETFs) through an early access program for its Global Fund Services clients. NYDIG, a well-known bitcoin infrastructure provider, will serve as the sub-custodian, handling the digital assets with institutional-level security.
The decision comes after years of regulatory uncertainty in the crypto space. Now, with clearer rules emerging, banks are starting to lean in. U.S. Bank says adding bitcoin ETFs shows its commitment to giving institutional clients a full suite of services. Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, called the move an expansion of the bank’s role as an “early innovator” in digital assets.
NYDIG CEO Tejas Shah said the partnership helps bridge the gap between old-school finance and the modern economy, making bitcoin more accessible for the bank’s large fund clients. Analysts see secure custody solutions like this as a crucial step for wider adoption of bitcoin among big investors.
U.S. Bank, which manages more than $11.7 trillion in assets under custody and administration, has been steadily growing its digital finance capabilities. Chief digital officer Dominic Venturo said the bitcoin program is part of a long-term plan to open new opportunities in digital services.
Market watchers say U.S. Bank’s move could set the tone for other major banks. As regulations continue to take shape, more institutions may follow suit, adding crypto options for clients who want new ways to diversify and hedge against inflation.
Meanwhile, Ethereum has been outperforming bitcoin in recent weeks. Capital is flowing into ether spot ETFs, and companies are adding it to their digital treasuries. Analysts point to a rotation of investment from bitcoin into Ethereum-based assets, though it remains to be seen how long that trend will last.
