US Bank rolls out crypto custody services for institutional clients
US Bank, the fifth-largest bank in the United States, announced on the 5th that it has started providing cryptocurrency custody services for institutional investors.
According to the announcement, the services will be offered to private fund clients in the United States and the Cayman Islands and will support institutional crypto funds invested in Bitcoin, Litecoin, and Bitcoin Cash. Other coins such as Ethereum would be added in the future.
Gunjan Kedia, head of asset management at US Bank, said in a statement that investors have seen a surge in demand for crypto service offerings in recent years. She said:
“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.”
The financial giant has partnered with NYDIG, a major bitcoin investment firm to help investment managers store private keys for cryptocurrencies. NYDIG will act as the sub-custodian of the bank.
US Bank previously partnered with NYDIG to administer NYDIG’s planned Bitcoin ETF, which is yet to be approved by the US SEC.
NYDIG manages $4 billion under crypto assets, and has recently partnered with digital payment provider Allied Payment Network and NCR, a major enterprise payment company, to provide cryptocurrency trading service systems.
The recent move by US Bank came after several of its rivals entered the competitive crypto industry. In May, investment bank Cowen Inc. announced that it would launch custody services while Bank of New York Mellon is set to launch custody services this year.
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