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U.S. Bank Restarts Bitcoin Custody Service for Institutions Amid Regulatory Relief

After a three-year pause, U.S. Bank, the nation's fifth largest bank by assets, has resumed its institutional bitcoin custody service, expanding to include bitcoin ETFs via a partnership with NYDIG. Regulatory clarity, including repeal of an SEC accounting directive, has enabled the relaunch, meeting rising institutional demand for secure, regulated digital asset services.

Updated Jan 15, 2026, 8:21 p.m.

Source: U.S. Bancorp Press Release via Business Wire — published, Sept 03, 2025.

U.S. Bank Bitcoin Custody

U.S. Bank first launched its cryptocurrency custody offering in 2021, only to pause in early 2022 following the SEC's Staff Accounting Bulletin 121, which imposed burdensome capital treatment on crypto holdings. With that guidance repealed earlier in 2025, the bank felt confident enough to resume operations.

The revived service is targeted at institutional investment managers of registered or private funds, now extended to include bitcoin ETFs. NYDIG—a regulated, vertically integrated bitcoin-focused firm—will act as the sub-custodian, storing clients' assets behind the scenes while U.S. Bank remains the face of client interaction.

Institutional appetite for regulated digital-asset infrastructure has exploded, underpinned by the popularity of spot bitcoin ETFs like BlackRock's iShares Bitcoin Trust, now commanding over $80 billion in AUM. Historically, Coinbase has dominated custody services for ETF issuers, serving over 80% of them. U.S. Bank's return now positions it to offer a traditional, trust-backed alternative.

Stephen Philipson, a senior U.S. Bank executive, emphasized that having a bank-owned provider offers clients "strength, stability, and continuity" in the evolving crypto space.

U.S. Bank's renewed custody offering reflects a broader shift: regulatory headwinds are receding and traditional financial institutions are re-entering the crypto ecosystem. By blending regulated infrastructure with deep custody expertise through NYDIG, U.S. Bank has positioned itself as a credible and compliant partner for institutional investors exploring digital asset exposure.

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