This 2021 has already seen major banking groups, such as JP Morgan and Wells Fargo, offer crypto fund trading services. But it’s another big step in the integration of Bitcoin and digital assets into traditional finance that has just been taken again. Indeed, the US Bank will now offer its own cryptocurrency custody service.
Bitcoin invites itself into US Bank’s vaults
U.S. Bancorp is the 5th largest banking group in the United States, with over $559 billion in assets under management. Its subsidiary US Bank has just announced this October 5th a big jump into the cryptosphere.
We learn indeed, through a press release published on BusinessWire, that the bank has partnered with the crypto-company NDYG to offer a custody service of crypto-assets to its customers.
This service is even already online and available to its wealthy Global Fund Services clients. This crypto-currency storage offering is specifically aimed at “institutional investment managers” according to the US Bank release.
“Investor interest in cryptocurrencies, as well as demand from our service clients for [investment] funds, has grown significantly over the past few years… ) Our fund and institutional custody clients have accelerated their plans to offer crypto-currencies [to their own clients] and, in response, we have made it a priority to accelerate our ability to offer custody services for crypto-assets so we are excited to offer our institutional clients NYDIG’s industry-leading bitcoin expertise, backed by the financial strength of U. S. Bank.”
Partnership with NDYG, a pro crypto-investment specialist
Even though US Bank is officially offering its own crypto custody service, it will technically be based, as a sub-custodian, on the highly regarded New York Digital Investment Group (NYDIG) service.
This technology company offers institutional-level financial services for investment in Bitcoin. It was selected by US Bank for its “experience with compliance and regulatory standards” in the crypto asset space.
“NYDIG is excited to partner with US Bank to provide our clients with a custody solution that meets the highest security standards…. Together, we can facilitate access to this growing asset class (…)”Robert Gutmann, co-founder and CEO of NYDIG
While the service will initially be all about Bitcoin, the custody offering is expected to be quickly expanded to other cryptocurrencies, according to the release.
So far, in the United States, the only other bank to have taken the step of keeping bitcoins on behalf of its clients was the Bank of New York Mellon. The more time passes, the more traditional banks seem to understand that the entry of crypto-assets into global finance is inevitable.