US Bancorp Relaunches Crypto Custody Services After SEC Rule Rollback
US Bancorp has reentered the digital asset space, resuming its crypto custody services for institutional clients after a regulatory shift under the Trump administration.
The move comes after the SEC rescinded a rule that required banks to hold capital against crypto-related activities, which had effectively stalled earlier initiatives. With the rollback in place, the Minneapolis-based lender — the fifth-largest commercial bank in the U.S. — is pushing forward once again.
“We had the playbook, and it’s sort of opening it up and executing it again,” said Stephen Philipson, head of US Bank’s institutional division. He added that the bank intends to scale the service as demand grows, while also exploring applications for digital assets in wealth management and consumer payments.
US Bancorp originally launched its custody offering in 2021, partnering with fintech firm NYDIG, but paused the program following SEC guidance. With the restrictions lifted, the bank is preparing for a renewed push into institutional digital asset services.
US Bancorp’s shares are up 1.44% YTD. Source: Google Finance
US Bancorp Restarts Custody With Bitcoin, Eyes Expansion to Other Assets
US Bancorp will begin its renewed crypto custody services with Bitcoin (BTC $111,364), focusing first on registered investment funds and Bitcoin ETF providers. The bank noted it may expand coverage to additional cryptocurrencies that satisfy its internal risk and compliance standards.
Until now, the custody market has been dominated by crypto-native firms such as Coinbase, BitGo, and Anchorage Digital. But recent changes in federal guidance — particularly from the Office of the Comptroller of the Currency (OCC) — are opening the door for more banks to compete in the space.
In 2022, BNY Mellon became the first major U.S. bank to enter the field, launching a custody platform to safeguard Bitcoin and Ether (ETH $4,420) for select institutional clients. The move positioned America’s oldest bank as a trailblazer in bridging traditional finance with digital asset infrastructure.
Traditional Finance Accelerates Push Into Crypto Custody
An increasing number of traditional banks are moving into the crypto custody space, building on regulatory shifts that have opened the door for greater institutional involvement.
In July, Deutsche Bank, Germany’s largest lender, unveiled plans to let clients store cryptocurrencies like Bitcoin, with a digital asset custody service expected to launch in 2026 in partnership with the technology arm of Austrian exchange Bitpanda.
A month later, reports surfaced that Citigroup is weighing similar plans to provide crypto custody and payment services, seeking to tap into demand fueled by Trump-era regulatory approvals and pro-industry legislation.