U.S. Bancorp launches cryptocurrency custody service for investment managers

Illustration of Bitcoin
FILE PHOTO: A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

October 5, 2021

(Reuters) – U.S. Bancorp said on Tuesday it had launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and Cayman Islands.

The fifth largest U.S. bank said bitcoin-focused financial services firm NYDIG will act as a sub-custodian and the service will soon support cryptocurrencies besides bitcoin as well.

“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” Gunjan Kedia, vice chair of the bank’s wealth management and investment services said.

Despite wild price swings in bitcoin and growing regulatory crackdown, major financial institutions have been investing and expanding their offerings in the cryptocurrency space.

In July, Business Insider reported https://bit.ly/2WeyK7X that JPMorgan Chase & Co would allow access to cryptocurrency funds to all its wealth management clients while Citigroup Inc said in August nL4N2PV3DG it was considering offering bitcoin futures trading for some institutional clients.

(Reporting by Sohini Podder in Bengaluru; Editing by Vinay Dwivedi)