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According to CNBC, US Bank, one of the largest retail banks in the United States, is scheduled to introduce on Tuesday its cryptocurrency custody services that would be made available to fund managers.
Introduction To Cryptocurrency Custody Services By US Bank
The soon-to-be-delivered solution for investment managers is intended for the secure storage of private keys for Bitcoin and other cryptocurrencies.
US Bank will be assisted in this function by the sub-custodian NYDIG. Following the offering's debut, support for currencies like Ethereum is likely.
The bank's offering is more likely related to the growing presence of institutional participants in the Bitcoin industry.
While major corporations or funds are ready to welcome customers eager to participate in cryptocurrency markets, custodial banks will be able to protect digital money worth billions of dollars.
Banks such as Bank of New York Mellon, State Street, and Northern Trust have previously declared intentions to hold digital assets.
Gunjan Kedia, the bank's vice chair, claimed that their clients are excited to diversify their portfolios with digital assets since they bring greater volatility and give big returns in a shorter time.
Largest Participants In The Custody Industry
With $8.6 trillion in assets under custody and management, US Bank is now one of the major participants in the custody industry.
Following the publication of the document allowing national banks to provide custody for cryptocurrency-related assets, the bank polled its largest clients to gauge demand for such a service.
The product offered is intended just for institutional clients based in the United States or the Cayman Islands.
Once the SEC authorizes a Bitcoin ETF, demand for custodial products is anticipated to grow.
BNY Mellon Has Joined the World's Largest Custody Banks in Supporting Cryptocurrency Trading
The Bank of New York Mellon has joined six other financial institutions in supporting the launch of the Pure Digital trading platform.
BNY Mellon announced plans to investigate new Bitcoin asset servicing options for its clients.
The bank's global head of foreign exchange, Jason Vitale, indicated that the bank is looking for partnership as part of its aim to build digital asset capacity for its clients.