U.S. Bancorp has significantly stepped back into the cryptocurrency scene with the relaunch of its cryptocurrency custody services for institutional investment managers. This move marks a noteworthy return for the bank after it paused these services in 2022. Originally introduced in 2021 in collaboration with NYDIG, a leading Bitcoin financial services firm, the custody services now include support for Bitcoin ETFs. This expansion broadens the scope of U.S. Bank’s offerings, positioning it as a pivotal player in the realm of institutional-grade custody solutions.
This decision to resume custody services is largely influenced by evolving regulatory clarity in the U.S. Notably, regulatory changes have paved the way for traditional financial institutions to engage with digital assets more freely. A significant 2022 Securities and Exchange Commission (SEC) guidance that required custodians to hold capital specifically for crypto-related activities was rescinded shortly after President Donald Trump took office this year. Furthermore, the Office of the Comptroller of the Currency announced in March 2025 that banks could offer custody for digital assets without prior approval, creating a favorable environment for traditional financial institutions to re-enter the market.
In this renewed framework, U.S. Bank has partnered with NYDIG to manage its Bitcoin custody operations. As a vertically integrated Bitcoin financial services provider, NYDIG will serve as the sub-custodian for U.S. Bank’s custody services. CEO Tejas Shah has emphasized the importance of this partnership, highlighting its potential to bridge traditional finance with the modern economy. He reassures institutional clients that robust, institution-grade safeguards will be in place for Bitcoin custody, ensuring that the services offered are both secure and compliant with evolving financial regulations.
Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, underscored the bank’s leadership in the digital asset space, noting it was one of the first major banks to offer such custody services in 2021. The reintroduction of these services is part of a wider strategy aimed at expanding digital asset solutions across U.S. Bank’s impressive $11.7 trillion in assets under custody and administration. Additionally, the bank is actively considering other cryptocurrencies for potential inclusion in its custody services, depending on whether they meet its internal standards.
Historically, the digital asset custody market has been dominated by crypto-native firms. However, the recent regulatory shifts have prompted larger, established financial institutions to explore and re-enter this increasingly lucrative space. Competitors like Bank of New York Mellon and Fidelity Investments have already rolled out similar services, while Citigroup is also signaling its interest in expanding its cryptocurrency offerings. The competition is set to intensify as institutional demand for secure, regulated custody solutions in the digital asset sector continues to grow.
The resurgence of major banks like U.S. Bank into the cryptocurrency custody market is reflective of a broader shift in U.S. financial policy, particularly under the current administration. The elimination of restrictive regulations and the government’s commitment to establishing the U.S. as a global leader in digital assets are key factors fueling renewed interest in this sector. This regulatory environment is anticipated to foster increased innovation and collaboration between traditional financial institutions and crypto infrastructure partners such as NYDIG.
Sources:
- [1] U.S. Bank Resumes Bitcoin Cryptocurrency Custody Services for Institutional Investment Managers (https://ir.usbank.com/news-events/news/news-details/2025/U-S–Bank-Resumes-Bitcoin-Cryptocurrency-Custody-Services-for-Institutional-Investment-Managers/default.aspx)
- [2] U.S. Bancorp Resumes Crypto Custody as Regulators Clear Path (https://www.bloomberg.com/news/articles/2025-09-03/u-s-bancorp-resumes-crypto-custody-as-regulators-clear-path)
- [3] U.S. Bank Resumes Bitcoin (BTC) Custody Services, Adds Support for ETFs (https://www.coindesk.com/business/2025/09/03/u-s-bank-resumes-bitcoin-custody-services-adds-support-for-etfs)
- [4] US Bancorp to offer Bitcoin Custody Services Again as Regulatory Environment Shifts (https://finance.yahoo.com/news/us-bancorp-offer-bitcoin-custody-171201540.html)
