U.S. Bancorp announced the revival of its cryptocurrency custody service for institutional investment managers, marking a renewed commitment to digital assets under the Trump administration’s more favorable regulatory framework. The service had been paused in early 2022 after the SEC issued SAB 121, which treated customer digital assets as bank liabilities, making custody cost-prohibitive for banks.
Following the repeal of SAB 121 in mid-2025, U.S. Bancorp relaunched the offering with extended support for spot Bitcoin exchange-traded funds (ETFs). NYDIG has been appointed as the asset sub-custodian, responsible for safeguarding the underlying Bitcoin, while U.S. Bancorp’s Global Fund Services division will manage client onboarding, reporting, and compliance.
The custody program is available to institutional investment managers with registered or private funds seeking secure, regulated safekeeping solutions. U.S. Bancorp holds $11.7 trillion in assets under custody and administration, positioning it to scale its digital asset services rapidly. The relaunch coincides with growing institutional demand for regulated crypto infrastructure and the proliferation of Bitcoin ETFs, led by products such as BlackRock’s iShares Bitcoin Trust.
Executives at U.S. Bancorp emphasize that bank-owned custody provides clients with the operational continuity, regulatory oversight, and fiduciary safeguards expected of a leading financial institution. Observers note that Citigroup and other global banks are exploring similar custody offerings, signaling broader adoption of digital asset services across traditional finance.
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