US Bank will now accept Bitcoin, as they will their own cryptocurrency custody services. Earlier this year already major banking groups such as JP Morgan and Wells Fargo were offering bitcoin fund trading services.
Will Bitcoin Come to US Bank’s vaults?
US Bancorp, the 5th largest banking group in the United States, in a press release published that the bank has teamed up with crypto-company NDYIG to offer a crypto-custody service to its customers. The bank has over $559 billion in assets under management, while its subsidiary US Bank has just announced on October 5th a big leap into the crypto sphere.
Currently, the service is available to its wealthy Global Fund Service clients. The digital storage services focused on institutional investment managers.
The US Bank in a statement said, “Investor interest in crypto-currencies, as well as demand from our fund [investment] service clients, has grown significantly in recent years (… ) Our fund and institutional custody clients have accelerated their plans to offer crypto-currencies [to their own clients] and, in response, we have made it a priority to accelerate our ability to offer custody services for crypto-assets so we are excited to offer our institutional clients NYDIG’s industry-leading bitcoin expertise, backed by the financial strength of U. S. Bank.”
Partnership with NDYIG
The service will be offered in partnership with NDYIG, a professional’s crypto-investment specialist. Even though the will be offering its own crypto custody service, it will technically be a sub-custodian on the highly regarded NYDIG service.
With this technology, the company will offer institutional-level financial services for investment in Bitcoin. The US bank selected NYDIG for their experience with compliance and regulatory standards” in the crypto asset space.
The service will solely focus on Bitcoin initially, but in the future will expand to other cryptocurrencies.
Currently, the only other bank to offer similar services in the US is Bank of New York Mellon. As time goes by more traditional banks will sink in to understand that the entry of crypto-assets into global finance is inevitable.