U.S. Bank on Tuesday (Oct. 5) debuted its cryptocurrency custody services and made them available to their global fund services clients who are looking for a safe haven for their bitcoin purchases, with more support expected to be added to the platform soon.
The bank also announced bitcoin-focused technology and financial services platform NYDIG as the first crypto sub-custodian in the bank’s network of providers.
“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” Gunjan Kedia, vice chair, U.S. Bank wealth management and investment services, said in the announcement. “Our fund and institutional custody clients have accelerated their plans to offer cryptocurrency and, in response, we made it a priority to accelerate our ability to offer custody services. The environment is complex, with an evolving regulatory landscape and nascent technology platforms.”
Robert Gutmann, co-founder and CEO of NYDIG, is excited about the partnership with U.S. Bank, he said in the joint announcement. “NYDIG is excited to partner with U.S. Bank to provide its customers with a custody solution that meets the highest security, compliance and regulatory standards,” he said. “Together, we can facilitate access to this growing asset class while delivering the best-in-class experience that U.S. Bank’s clients have come to expect.”
Earlier this year, U.S. Bank invested in the institutional-grade blockchain-based financial and regulatory technology developer Securrency.
Related news: No Plans to Ban Crypto in US – But Digital Dollar May Eventually Win Out
Federal Reserve Chair Jerome Powell said last month that there was “no intention to ban” cryptocurrencies, adding that stablecoins are “like bank deposits, but they’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated.”
Some have argued that a digital dollar would be enough to eliminate cryptos, but Powell’s comments that you “wouldn’t need” the stablecoins or the cryptos implies that there’s something else out there that can satisfy everyone’s digital commerce needs.
Recent PYMNTS research shows that almost three-fifths (58%) of multinational companies use at least one type of cryptocurrency. Of that tally, about 30% are using stablecoins.
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