US Bancorp entered the cryptographic space by relaunching its digital asset childcare services for institutional investment managers.
The return to the US Bancorp follows a regulatory change under the current administration of President Donald Trump, who returned a previous rule of the SEC which had forced banks to hold capital on their balance sheet for the activities related to the crypto, according to a Bloomberg Wednesday report.
“We had the game book and it is sort of opening it and executing it again,” said Stephen Philipson, head of the institutional division of the American bank. He noted that the bank plans to develop the service as demand develops and also explores the way in which digital assets could integrate into other areas such as wealth management and consumer payments.
The Bank based in Minneapolis, the fifth largest commercial bank in the United States, first launched its daycare service in 2021 in partnership with Fintech Nydig, before it was interrupted due to the DSA directives. With the canceled rule, US Bancorp proceeds with a renewed thrust.
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Us Bancorp to offer Bitcoin custody for funds
US BANCORP will initially provide childcare services for Bitcoin (BTC), starting with registered investment funds and Bitcoin ETF suppliers. The bank said that it could develop to include other cryptocurrencies that meet its internal risk and compliance standards.
The crypto childcare service was directed by crypto-native companies such as Coinbase, Bitgo and Digital Anchorage. However, changes in federal orientations, in particular by the office of the Currency Controller, now give banks more space to operate.
In 2022, BNY Mellon launched a digital guard platform to protect Select Institutional Customers’ Bitcoin and Ether (Ether) Holdings, making the oldest American bank in America the first big bank in the country to offer custody of digital assets.
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More banks grow in the warning of cryptography
Meanwhile, an increasing number of traditional financial institutions have moved to the Cryptography Guard.
In July, the largest German bank, Deutsche Bank, announced its intention to allow its customers to store cryptocurrencies, including Bitcoin next year. The bank plans to launch a digital police custody in 2026 in collaboration with the Bitpanda Crypto Exchange technological unit, based in Austria.
In August, it was reported that Citigroup weighed plans to provide childcare and cryptocurrency payment services, aimed at capitalizing on a reinforced market by regulatory approvals of the Trump era and pro-industrial legislation.
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