US Bancorp Resumes Crypto Custody Services in 2025
In a significant development for the cryptocurrency sector, US Bancorp has reinstated its digital asset custody services targeted at institutional clients, following a regulatory shift facilitated by the U.S. Securities and Exchange Commission (SEC) rule rollback enacted during the Trump administration. This strategic move positions US Bancorp to re-engage with the evolving crypto market in 2025.
Stephen Philipson, head of US Bancorp’s institutional division, expressed optimism about the bank’s renewed efforts in the cryptocurrency space, stating,
“We had the playbook and it’s sort of opening it up and executing it again.”
With the rescinded SEC rule that previously mandated banks to hold additional capital for crypto-related activities, US Bancorp aims to expand its services as demand increases. The bank is also exploring innovative applications for digital assets beyond custody, such as in wealth management and consumer payments.
Originally launched in 2021 in collaboration with fintech firm NYDIG, US Bancorp’s custody service was temporarily paused due to the stringent SEC guidance on cryptocurrency management. Now, with regulatory barriers lowered, the Minneapolis-based bank is poised for a robust re-entry into the digital asset space. Initially, US Bancorp will provide custody services specifically for Bitcoin (BTC), focusing on registered investment funds and Bitcoin Exchange-Traded Fund (ETF) providers. As the service matures, there are plans to potentially include other cryptocurrencies that meet the bank’s internal risk and compliance standards.
The landscape of crypto custody services has predominantly been occupied by crypto-native firms such as Coinbase, BitGo, and Anchorage Digital. However, recent federal guidance, particularly from the Office of the Comptroller of the Currency, has granted traditional banks greater latitude to participate in this burgeoning market. Notably, in 2022, BNY Mellon made headlines by launching a digital custody platform, marking a significant milestone as the first large bank in the U.S. to offer custody services for digital assets.
In addition to US Bancorp, other financial institutions are increasingly entering the crypto custody arena. For instance, Deutsche Bank, Germany’s largest bank, announced plans to roll out a cryptocurrency storage service for its clients in 2026, partnering with the technology division of Austria-based Bitpanda. Similarly, Citigroup has been evaluating opportunities to offer cryptocurrency custody and payment services, motivated by favorable regulatory conditions stemming from the Trump administration’s policy changes.
The evolving regulatory landscape and the increasing acceptance of cryptocurrencies by traditional financial institutions highlight a significant pivot in the financial sector. As US Bancorp and its counterparts navigate this new terrain, the future of digital asset management appears promising, paving the way for a more integrated financial ecosystem.
For more insights on the intersection of traditional banking and cryptocurrencies, visit Cointelegraph.
