Fifth Biggest US Bank Starts Offering Bitcoin Custody Services

The fifth biggest US Bank starts offering Bitcoin custody services but also custody services for Litecoin and Bitcoin Cash in partnership with NYDIG so let’s read more in our latest crypto news today.

The fifth biggest US Bank starts offering crypto custody services for Bitcoin, Litecoin, and Bitcoin Cash with the firm planning to add support for ETH and other coins in the future. The US Bank is the fifth biggest banking institution in the United States and it announced that it has launched custodial services for Bitcoin so now all institutional investment managers with private funds in the Cayman Islands can tap the bank’s service to store their private keys.

As interest in cryptocurrency increases among institutional investors, we’re excited to partner with @NYDIG_BTC to offer our clients an industry-leading safekeeping solution for Bitcoin. Learn more: https://t.co/xcNquYAzYI pic.twitter.com/VxE9CYqS8g

— U.S. Bank (@usbank) October 5, 2021

The bank works with financial services and tech firm New York Digital Investment Group or NYDIG as its first sub-custodian for the services while previously signing on to administer NYDIG’s planned BTC ETF or the exchange-traded fund which is still awaiting approval from the United States Securities and Exchange Commission. According to CNBC, the US Bank is now offering custody services for Litecoin, Bitcoin Cash, and Bitcoin with plans to add Ethereum and other coins over time, as the Vice-Chair of Wealth Management and Investment Servies Gunjan Kedia said.

The US bank announced plans to take custody of crypto assets in April as it wrote at the time that that details will be announced in a few weeks. The company also invested in blockchain infrastructure technology firm Securrency earlier this year. Kedia said:

“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years. 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.”

Today’s announcement suggested that the increased acceptance of crypto by the traditional financial sector follows the report released by Bank of America’s Global Research division that described the bank as being bullish on crypto and calling blockchain the most exciting new market in years. The financial institution joined a growing list of companies providing custody of crypto for institutional investors and the Traditional investment bank Cowen also announced that it would launch custody services while Deutsche Bank revealed the same later. Crypto exchange Coinbase has its own custody service that counts some prominent customers like Andreessen Horowitz and Polychain Capital. The NYDIG has plans to bring crypto services to hundreds of American banks in the near future and the company even partnered with Fidelity National Information Services to enable the US Banks to offer to sell and to buy for customers. NYDIG also said that it was in discussions with a few major US Banks at the time.