Today U.S. Bank announced the launch of its cryptocurrency custody services for Global Fund Services clients, targeted at institutional investment managers that hold Bitcoin with other coins to be added later. It’s partnering with StoneRidge’s NYDIG as its first sub-custodian.
“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,” said Gunjan Kedia, vice chair, U.S. Bank Wealth Management and Investment Services.
U.S. Bank Wealth Management and Investment Services has more than $8.6 trillion in assets under custody and administration. In April, the bank invested in blockchain financial and regtech firm Securrency alongside State Street and others.
NYDIG only deals with Bitcoin and manages a number of funds. Started by StoneRidge, it’s backed by Morgan Stanley, Soros Fund Management, New York Life and MassMutual. And clients of JP Morgan and Wells Fargo can invest in its funds.
Meanwhile, many banks are getting into the digital asset custody sector. BNY Mellon is launching a custody service by partnering with Fireblocks. Standard Chartered and Northern Trust have partnered to launch Zodia, which recently received regulatory approval. And several banks are involved in Pyctor, a decentralized digital asset custody initiative founded by ING.