America's Fifth-Largest Banking Institution US Bank to Offer Cryptocurrency Custody

On April 27, the American bank holding company U.S. Bank revealed in a blog post that the financial institution plans to offer cryptocurrency custody services. The bank’s chief strategy officer for U.S. Bank Global Fund Services, Christine Waldron, says she is proud of her company’s steps toward blockchain and cryptocurrency practices.

US Bank to Offer Cryptocurrency Services Pending Compliance Approval

During the first week of January 2021, The Office of the Comptroller of the Currency (OCC) revealed that national banks and savings associations in the U.S. could deal with stablecoins and public blockchains. Following that announcement, The oldest bank in America, Bank of New York Mellon (BNY Mellon) disclosed in mid-February that it created a digital currency unit. On Tuesday, the fifth-largest banking institution in the country, U.S. Bank published a blog post that details new cryptocurrency offerings.

Although, the blog post does not reveal when the bank will deploy these products, but the bank mentioned three types of services. The bank will offer a “new cryptocurrency custody product for customers with the engagement of a sub-custodian for fund servicing.” At the moment, the company is finalizing the arrangement for a sub-custodian. U.S. Bank also says that the company is also working on strategic relationships.

“We recently announced our investment in Securrency – a developer of institutional-grade blockchain-based financial and regulatory technology,” the bank said. U.S. Bank will also be working with NYDIG’s exchange-traded fund. “U.S. Bank has been selected to administer NYDIG’s ETF bitcoin fund this year, pending regulatory approvals. It expands on the bank’s long-standing private fund servicing relationship with NYDIG,” the announcement notes.

‘Driving Innovation in Our Blockchain and Cryptocurrency Practice’

U.S. Bank’s Christine Waldron explained that she is proud of her financial institution for its forward-thinking practices. “I am proud of how we came together from all areas of banking and brought forward our best thinking across our digital capabilities, product development, and technology to drive innovation in our blockchain and cryptocurrency practice,” Waldron detailed.

“We’ve been active in this space for years – ensuring we are always best situated to serve our institutional clients – and these latest initiatives demonstrate our ongoing commitment and enthusiasm to grow this market,” the chief strategy officer for U.S. Bank Global Fund Services concluded.