U.S. Bank has officially resumed its cryptocurrency custody services for institutional investment managers, marking a significant return to the digital asset space. This relaunch, initially introduced in 2021 and paused in early 2022, now includes support for Bitcoin exchange-traded funds (ETFs).
The decision to re-engage with crypto custody is largely attributed to a clearer regulatory environment, particularly the Securities and Exchange Commission's (SEC) rescission of Staff Accounting Bulletin 121 (SAB 121). Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, expressed enthusiasm for the renewed offering, stating, “We're proud that we were one of the first banks to offer cryptocurrency custody for fund and institutional custody clients back in 2021, and we're excited to resume the service this year. Following greater regulatory clarity, we've expanded our offering to include bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services.”
NYDIG, a firm specializing in institutional Bitcoin services, is partnering with U.S. Bank as the sub-custodian, managing the actual Bitcoin assets. Tejas Shah, CEO of NYDIG, highlighted the significance of this collaboration, noting, “NYDIG is honored to partner with U.S. Bank as its primary provider for bitcoin custody services. Together, we can bridge the gap between traditional finance and the modern economy by facilitating access for Global Fund Services clients to bitcoin as sound money, delivered with the safety and security expected by regulated financial institutions.”
The rescission of SAB 121, which previously required banks to hold crypto assets on their balance sheets, has been a critical factor in enabling this relaunch. Critics had argued that SAB 121 created significant financial burdens, making it impractical for banks to offer custody services. The SEC's move to rescind this guidance, alongside other regulatory adjustments, has created a more favorable environment for traditional financial institutions to engage with digital assets. This regulatory shift is seen as a pivotal moment, encouraging greater institutional participation and innovation in the crypto market.
As of June 30, 2025, U.S. Bank's Wealth, Corporate, Commercial and Institutional Banking division oversees more than $11.7 trillion in assets under custody and administration. This substantial asset management capacity positions U.S. Bank as a key player in the evolving digital asset ecosystem. The bank's strategic move signals a growing convergence between traditional finance and the digital asset sector, driven by increasing client demand and a more supportive regulatory framework.
The broader trend of institutional adoption of digital assets is accelerating, with many investors planning to increase their allocations in the coming year, viewing regulatory clarity as a primary catalyst for growth.