US Bank – the fifth largest commercial bank in the United States by assets – announced that it has launched its own cryptocurrency custody service for large investors.
The new service will help investment managers store Bitcoin, Bitcoin Cash and Litecoin. Over time, support for other coins will appear, including Ethereum.
The bank will be helped in this by the cryptographic company NYDIG, which announced this spring that hundreds of banks in the United States will work with bitcoin this year.
Given the status of the US Bank, its size and age (the bank’s assets date back to Farmer’s and Millers Bank, founded in 1853), the source believes the move is the latest sign that reputable financial players are starting to accept cryptocurrencies as a legitimate asset class. In the realm of custodian banks that vet and protect trillions of dollars of traditional assets for money managers, major players including Bank of New York Mellon, State Street and Northern Trust have announced plans to hold digital assets.
Our clients take the potential of cryptocurrency as a diversified asset class very seriously. I do not believe there is even one asset manager who is not thinking about it right now.
Gunjan Kedia, Deputy Chairman of Capital Management and Investment Services, US Bank
According to the bank, the service is intended only for institutional managers with private funds in the United States or the Cayman Islands. But if and when the US Securities and Exchange Commission approves the Bitcoin ETF, demand is expected to rise.
We have many funds looking to invest in ETFs. Some literally want to sign custodial contracts on the day the SEC approves the ETF.
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