5th Largest US Bank Is Setting Up Bitcoin Custody, With Other Cryptocurrencies to be Supported Soon
US Bancorp (US Bank) has launched a cryptocurrency custody service for institutional investment managers with private funds in the U.S. or Cayman Islands. The fifth-largest US bank has more than $8.6 trillion in assets under custody and administration and $282 billion in assets under management as of June 30, 2021. It was this week; the bank announced the launch saying bitcoin service provider NYDIG will act as a sub-custodian. “Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” said Gunjan Kedia, vice-chair of the bank's wealth management and investment services. While starting with Bitcoin, it will soon support other cryptocurrencies as well. US Bancorp is just another bank allowing access to cryptocurrency while the regulatory scrutiny increases. This week, Bank of America also started covering crypto and released its first report titled “Digital Assets Primer: Only the first inning.” “Companies aren't taking the risk of ignoring digital assets and applications and are actively exploring this new technology and its use cases,” reads the report, adding, leading tech companies along with banks, financial institutions, and others have also started to adjust their approach to crypto. It further noted that an estimated 14% (21.2mn) of US adults own digital assets, with an additional 13% (19.3mn) planning to buy this year. The average age of these potential buyers is 44, and 53% of them are female.
“Despite regulatory headwinds, we are bullish on the prospects for digital assets as it enters the mainstream. We anticipate significant growth as use cases move beyond BTC’s store of value thesis to an industry characterized by product innovation.”
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