Group 1 - US Bancorp has officially relaunched its bitcoin custody service, marking a significant return of traditional banks to the digital asset space after a three-year regulatory freeze [1][2][3] - The re-entry into bitcoin custody indicates that traditional financial institutions are beginning to embrace cryptocurrency infrastructure as regulatory clarity improves under the current administration [2][4] - The initial launch of US Bancorp's bitcoin custody program in 2021 was halted due to restrictive SEC guidance that made it economically unviable for banks to offer such services [3][4] Group 2 - The repeal of the restrictive SEC guidance earlier this year has allowed banks to re-enter the custody business without the previously prohibitive capital requirements [4] - US Bancorp's custody service is strategically positioned to target institutional investment managers, particularly in light of the growing interest in bitcoin exchange-traded funds (ETFs) [6]

Core 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 - The SEC rescinded the 2022 bulletin in January 2025, allowing U.S. Bancorp to reintroduce its bitcoin custody service [2][10].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].

Market Trend - US Bancorp relaunches institutional Bitcoin custody service after a 3-year pause [1] - US Bancorp partners with NYDIG as sub-custodian for the Bitcoin custody service [1]

JUST IN: 🇺🇸 U.S. Bancorp revives institutional Bitcoin custody service after 3+ years. ...