US Bank has joined the cryptocurrency stampede, launching a safekeeping custody service for institutional investment managers.
The services are intended for investment firms with private funds in the US or Cayman Islands who need a safekeeping solution for their crypto holdings. Initially rolled out for bitcoin, US Bank says additional coin support will be coming soon.
Nydig is the first crypto sub-custodian announced in the bank’s network of providers.
“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” says Gunjan Kedia, vice chair, US Bank Wealth Management and Investment Services. “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.”
US Bank joins a host of financial institutions to extend their traditional role as intermediaries in the safekeeping of stock certificates and the like to the emerging realm of digital assets.
Permission for regulated banks to offer cryptocustody in the US was green lighted by the Office of the Comptroller of the Currency (OCC) in July last year.
Says Kedia: “The environment is complex, with an evolving regulatory landscape and nascent technology platforms. Our clients are looking for a service offering that is consistent with US Bank’s exceptional standards of quality and risk management."