U.S. Bank, one of the largest financial institutions in the United States, has announced the resumption of its cryptocurrency custody services for institutional clients, marking a significant step in bridging traditional finance with the rapidly evolving digital asset sector. Initially launched in 2021, the program was paused in 2022 due to regulatory challenges. Now, with renewed regulatory clarity, U.S. Bank is relaunching its services as an early access program through its Global Fund Services division, catering to institutional investment managers with registered or private funds seeking secure safekeeping solutions for Bitcoin.

A Strategic Reentry into Digital Assets

The decision to resume cryptocurrency custody services comes in response to growing demand from institutional investors and a more favorable regulatory environment. U.S. Bank has expanded its offerings to include custody for Bitcoin exchange-traded funds (ETFs), a move that reflects the increasing popularity of regulated crypto investment products. This expansion allows the bank to provide comprehensive solutions for asset managers seeking both custody and administration services for digital assets.

Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, emphasized the bank’s pioneering role in the digital asset space. “We’re proud that we were one of the first banks to offer cryptocurrency custody for fund and institutional custody clients back in 2021, and we’re excited to resume the service this year,” Philipson said. “Following greater regulatory clarity, we’ve expanded our offering to include Bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services.”

Partnership with NYDIG

U.S. Bank has partnered with NYDIG, a leading Bitcoin financial services firm, to serve as the sub-custodian for its cryptocurrency custody program. NYDIG’s institutional-grade infrastructure ensures secure storage and management of Bitcoin and Bitcoin ETFs, providing clients with the safety and reliability expected from a regulated financial institution. Tejas Shah, CEO of NYDIG, highlighted the partnership’s significance, stating, “Together, we can bridge the gap between traditional finance and the modern economy by facilitating access to Bitcoin as a secure asset for institutional clients.”

This collaboration leverages NYDIG’s expertise in Bitcoin custody and U.S. Bank’s extensive experience in managing over $11.7 trillion in assets under custody and administration as of June 30, 2025. The partnership positions U.S. Bank as a trusted intermediary, offering clients a seamless integration of traditional and digital asset management.

Regulatory Clarity Fuels Expansion

The relaunch of U.S. Bank’s cryptocurrency custody services follows significant regulatory developments, including the repeal of the Securities and Exchange Commission’s Staff Accounting Bulletin (SAB) No. 121 in early 2025. This regulatory shift removed previous constraints that made it capital-intensive for banks to hold digital assets on behalf of clients. Additionally, the SEC’s approval of spot Bitcoin ETFs in January 2024 has driven significant interest in these investment vehicles, with total assets under management in Bitcoin ETFs nearly tripling from $50 billion in July 2024 to approximately $150 billion in July 2025.

The growing acceptance of digital assets in mainstream finance, coupled with supportive regulatory frameworks, has created a favorable environment for banks to expand their cryptocurrency offerings. U.S. Bank’s strategic reentry into the market reflects its commitment to meeting the evolving needs of its institutional clients.

Meeting Growing Institutional Demand

The demand for secure cryptocurrency custody solutions has surged as institutional investors increasingly allocate capital to digital assets. According to industry reports, the crypto custody market is projected to grow from $3.28 billion in 2025 to over $6 billion by 2030, driven by institutional participation and the proliferation of digital asset classes. U.S. Bank’s expanded services, including support for Bitcoin ETFs, position it to capitalize on this trend and cater to asset managers seeking regulated and secure investment options.

Dominic Venturo, senior executive vice president and chief digital officer at U.S. Bank, underscored the bank’s forward-looking approach. “U.S. Bank has been at the forefront of exploring how digital assets can serve our clients. Further expanding our capabilities unlocks new opportunities to deliver innovative solutions to those we serve,” Venturo said. “We will continue to drive progress and shape the future of digital finance.”

A Leader in Institutional Finance

With over $11.7 trillion in assets under custody and administration, U.S. Bank’s Wealth, Corporate, Commercial, and Institutional Banking division is well-positioned to lead in the digital asset custody space. The bank’s comprehensive offerings, which include alternative investment services, ETF and fund custody, fund administration, asset management, corporate trust, and wealth management, provide a robust foundation for integrating cryptocurrency services.

U.S. Bank’s seamless consolidation of traditional and digital assets on the same statements and reporting ensures a streamlined experience for institutional clients. This integrated approach, combined with the bank’s reputation for stability and operational excellence, makes it a premier choice for asset managers navigating the complexities of the digital asset market.

Looking Ahead

As Bitcoin and other digital assets gain traction in institutional portfolios, U.S. Bank’s resumption of cryptocurrency custody services signals a broader trend of traditional financial institutions embracing the digital economy. The bank plans to scale its program to include additional cryptocurrencies that meet its internal risk and compliance standards, while also exploring opportunities to incorporate digital assets into wealth management and consumer payment solutions.

By aligning with regulatory advancements and partnering with industry leaders like NYDIG, U.S. Bank is poised to play a pivotal role in the institutional adoption of digital assets. This strategic move not only strengthens its position in the financial services industry but also underscores the growing legitimacy of cryptocurrencies as a core component of modern investment portfolios.

For institutional investors seeking secure and reliable custody solutions, U.S. Bank’s reentry into the cryptocurrency market offers a trusted pathway to participate in the evolving digital asset landscape. To learn more about U.S. Bank’s cryptocurrency custody services, visit usbank.com/investment-services.

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