U.S. Bank Restarts Bitcoin Custody, Could Support ETFs Tracking BTC for Institutional Managers

• U.S. Bank resumes Bitcoin custody for institutional funds

• Service targets institutional investment managers and supports Bitcoin ETFs and fund custody.

• Works with NYDIG; decision follows rescission of SEC Staff Accounting Bulletin No. 121 and easing regulatory oversight.

U.S. Bank crypto custody resumes, offering Bitcoin ETF custody and institutional services — learn how fund managers can access custody today.

What is U.S. Bank crypto custody and who can use it?

U.S. Bank crypto custody is a regulated custody service for institutional clients that stores and administers Bitcoin on behalf of registered and private funds. The service is available to institutional investment managers seeking custody and administration for Bitcoin ETFs and fund structures, leveraging established bank custody controls.

How did regulatory changes enable U.S. Bank to restart custody services?

Regulatory clarity changed after the rescission of Securities and Exchange Commission Staff Accounting Bulletin No. 121 (SAB 121), which previously restricted banks from custodying digital assets. The Federal Reserve’s reduced supervisory program and clearer guidance allowed U.S. Bank to reintroduce crypto custody. The bank cites risk and compliance standards and client demand as gating factors.

Why is U.S. Bank focusing on Bitcoin ETF custody?

U.S. Bank is prioritizing custody for Bitcoin ETFs because spot Bitcoin ETFs have become a dominant institutional vehicle for BTC exposure. The bank said it will provide full-service custody and administration for managers issuing ETF and fund products, citing investor demand and the need for regulated, bank-grade custody solutions.

Who is U.S. Bank partnering with to deliver custody?

The bank is working with NYDIG (New York Digital Investment Group) to provide technical support and infrastructure. U.S. Bank will continuously evaluate other coins but will add assets only after meeting strict risk, compliance, and client-demand criteria.

Frequently Asked Questions

How does U.S. Bank’s custody process protect Bitcoin holdings?

U.S. Bank uses bank-grade custody controls, compliance monitoring, and operational safeguards. It integrates custodial key management, transaction controls, and reporting suitable for institutional investors and fund administrators.

Will U.S. Bank custody altcoins?

U.S. Bank will evaluate additional coins over time but will add assets only after meeting strict risk, compliance, and client-demand thresholds.

Key Takeaways

• Regulatory clarity enabled restart: The rescission of SAB 121 and reduced supervisory constraints allowed U.S. Bank to resume crypto custody.
• ETF support prioritized: The bank is focusing on custody services tailored to Bitcoin ETFs and institutional funds.
• Partnership-driven model: U.S. Bank is working with NYDIG and will expand asset coverage only after rigorous reviews.

Conclusion

U.S. Bank’s resumption of crypto custody marks a significant institutional return to bank-backed Bitcoin custody services. With a focus on Bitcoin ETF custody and institutional-grade controls, the bank aims to provide regulated, reliable safekeeping for managers. Fund managers should evaluate onboarding steps and compliance requirements to take advantage of these offerings.