U.S. Bancorp(US:USB) ZACKSยท2025-09-04 15:31Core Viewpoint - U.S. Bancorp has resumed its bitcoin custody service after a three-year hiatus, driven by a more favorable regulatory environment under the Trump administration, which has eased restrictions on digital assets [1][2][10]. Group 1: Service Resumption - The bitcoin custody service was initially launched in 2021 but was paused in early 2022 due to an SEC accounting bulletin that increased capital requirements for banks acting as custodians for crypto assets [1][3][10]. - The SEC rescinded the 2022 bulletin in January 2025, allowing U.S. Bancorp to reintroduce its bitcoin custody service [2][10]. Group 2: Target Market and Partnerships - The service will primarily target institutional investment managers with registered or private funds seeking secure safekeeping solutions for bitcoin [3][10]. - NYDIG will serve as the bitcoin sub-custodian for U.S. Bancorp's custody services [3][10]. Group 3: Service Offerings - U.S. Bancorp plans to initially offer custody services for bitcoin through traditional registered funds and exchange-traded funds (ETFs), with plans to expand into other cryptocurrency offerings in the future [3][4][10]. - The bank aims to provide full-service solutions for managers seeking custody and administration services, including bitcoin ETFs [4][10]. Group 4: Industry Context - Other major U.S. banks, such as Citigroup and The Bank of New York Mellon, are also exploring cryptocurrency services, influenced by the Trump administration's pro-crypto stance and the removal of restrictive regulations [11][12]. - Citigroup is considering stablecoin custody services, while BNY Mellon already offers custody for bitcoin and Ethereum and plans to expand into other digital assets [12].