U.S. Bank has rolled out a new cryptocurrency custody service for institutional investment managers who have private funds in the US or Cayman Islands.
The bank has selected NYDIG, a bitcoin-focused financial services firm, as a sub-custodian in the bank’s network of providers.
Also, it intends to expand custody service to cryptocurrencies beyond bitcoin.
U.S. Bank said that the investor interest in cryptocurrency and demand from its Fund Services Clients have increased in the last few years.
Its plans to provide cryptocurrency was driven by the fund and institutional custody clients and it has expanded its capability to offer custody services, said the bank.
U.S. Bank wealth management and investment services vice-chair Gunjan Kedia said: “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 U.S. Bank’s exceptional standards of quality and risk management.
“Integrity and expertise are critical to safeguarding our clients’ most valuable assets, so we’re thrilled to offer our institutional clients NYDIG’s industry-leading Bitcoin expertise, backed by the financial strength of U.S. Bank.”
U.S. Bank claimed that it is committed to delivering advanced digital assets innovation, and develop an institutional-grade blockchain-based financial and regulatory technology.
In April this year, it has launched three new initiatives for clients, including new products and services, strategic relationships, client wins in the cryptocurrency space.
U.S. Bank is the parent company of the U.S. Bank National Association and has nearly 70,000 employees and $559bn in assets as of 30 June 2021.
Its Wealth Management and Investment Services unit has more than $8.6 trillion in assets under custody and administration and $282bn in assets under management as of 30 June 2021.
NYDIG is engaged in providing bitcoin technology and financial services solutions to banks, insurers, corporations, and institutions.
NYDIG co-founder and CEO Robert Gutmann said: “NYDIG is excited to partner with U.S. Bank to provide its customers with a custody solution that meets the highest security, compliance and regulatory standards.
“Together, we can facilitate access to this growing asset class while delivering the best-in-class experience that U.S. Bank’s clients have come to expect.”
