U.S. Bank Relaunches Digital Asset Custody
The U.S. Bank crypto custody Bitcoin ETFs service is back after a multi-year pause caused by regulatory uncertainty. On Wednesday, the financial giant confirmed it would once again provide cryptocurrency custody services for institutional investment managers. The offering will include support for Bitcoin custody and Bitcoin exchange-traded funds.
Why U.S. Bank Stopped Its Service in 2022
U.S. Bank originally launched crypto custody in 2021, supporting Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, the service was halted in 2022 following the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121. This rule prevented banks from holding digital assets on behalf of clients. The suspension highlighted the challenges of compliance in a rapidly evolving industry.
Regulatory Shifts Under Trump Administration
In January, regulators rescinded SAB 121, paving the way for renewed services. The U.S. Bank crypto custody Bitcoin ETFs revival also comes after the Federal Reserve ended a program that closely monitored banks engaged in crypto. Since President Donald Trump took office earlier this year, the regulatory environment for digital assets has eased considerably. His administration has campaigned on loosening restrictions and personally endorsed crypto ventures.
Partnership With NYDIG to Expand Services
To provide safe and compliant custody, U.S. Bank is partnering with fintech company New York Digital Investment Group (NYDIG). The U.S. Bank crypto custody Bitcoin ETFs service will initially focus on Bitcoin but may expand. According to statements, the bank will continuously evaluate new coins across risk, compliance, and client demand before listing them.
Institutional Focus and Bitcoin ETFs
The relaunch specifically targets institutional investors. Custodying Bitcoin for exchange-traded funds has become the priority, given growing market demand. Stephen Philipson, vice chair at U.S. Bank, said the renewed clarity around crypto rules allows the bank to deliver “full-service solutions” for managers. The U.S. Bank crypto custody Bitcoin ETFs framework provides both custody and administration services for funds seeking secure exposure.
Market Context and Investor Demand
Institutional appetite for crypto has surged in 2025, with Bitcoin ETFs becoming a critical entry point. The U.S. Bank crypto custody Bitcoin ETFs service repositions the bank to meet this rising demand. By focusing on compliance and security, U.S. Bank aims to capture fund managers who prefer working with established financial institutions rather than newer crypto-native firms.
Looking Beyond Bitcoin Custody
While Bitcoin remains the centerpiece, U.S. Bank has not ruled out expanding into other assets. The U.S. Bank crypto custody Bitcoin ETFs initiative signals a cautious but forward-looking approach. By emphasizing compliance, the bank can diversify custody offerings as regulations evolve further. This strategy could eventually reintroduce Ethereum and other major tokens to the platform.