The bank will provide custody services for Bitcoin and support for exchange-traded funds (ETFs), targeting institutional fund managers, including both registered and private funds. This marks the bank’s most significant step in the digital asset space since it first entered crypto custody in 2021.
Stephen Philipson, Vice Chair of US Bank, emphasized: “We aim to provide fund managers with reliable custody and administration for Bitcoin ETFs – a demand that is becoming central to institutional investors.”
Previously, in 2021, US Bank launched custody services for a variety of digital assets, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, the service was suspended the following year after the U.S. Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 121, which required institutions to record digital assets on their balance sheets—making custody services costly and difficult to sustain.
The bank’s return comes amid looser regulatory policies under the Trump administration and rising institutional demand for secure Bitcoin access. Notably, the Federal Reserve has recently ended a supervisory program that had monitored banks engaged in crypto since 2023, easing oversight that many industry groups had criticized as “crypto debanking.”
Partnering with NYDIG to Strengthen Bitcoin Custody
Alongside BNY Mellon and State Street, US Bank is now among the major financial institutions offering regulated digital asset custody. Analysts expect the move to intensify competition as institutional demand for Bitcoin ETFs continues to grow.
To power its operations, US Bank has partnered with New York Digital Investment Group (NYDIG), a firm specializing in Bitcoin-focused financial services and infrastructure. Tejas Shah, CEO of NYDIG, noted: “This partnership allows us to bridge traditional finance with the modern digital economy, giving global fund clients access to Bitcoin as sound money, delivered with the safety and security expected from regulated financial institutions.”
