Bridging Finance: U.S. Bank Resumes Bitcoin Custody, Adds ETF Capabilities

In a significant move signaling the growing integration of cryptocurrencies into traditional finance, U.S. Bank, one of the largest financial institutions in the United States, has announced the resumption of its Bitcoin custody services for institutional investment managers. This program, initially launched in 2021 but paused in 2022 due to regulatory hurdles, is now being relaunched with expanded offerings, including support for Bitcoin exchange-traded funds (ETFs).

The decision comes amid a shifting regulatory landscape and surging institutional demand for digital assets, positioning U.S. Bank as a key player in bridging traditional finance with the evolving crypto economy.

The relaunched program, offered as an early access initiative through U.S. Bank’s Global Fund Services division, targets institutional investment managers overseeing registered or private funds seeking secure safekeeping solutions for Bitcoin. U.S. Bank has partnered with NYDIG, a leading Bitcoin financial services firm, which will serve as the sub-custodian for the digital assets. This collaboration ensures institutional-grade security and compliance, addressing the needs of asset managers navigating the complex world of cryptocurrency investments.

Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial, and Institutional Banking, emphasized the bank’s pioneering role, stating, “We’re proud that we were one of the first banks to offer cryptocurrency custody for fund and institutional custody clients back in 2021, and we’re excited to resume the service this year.”

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The inclusion of Bitcoin ETFs marks a significant expansion of U.S. Bank’s custody services. Spot Bitcoin ETFs, approved by the Securities and Exchange Commission (SEC) in 2024, have seen explosive popularity, with BlackRock’s iShares Bitcoin Trust (IBIT) alone managing $58.4 billion in assets. The ability to custody these ETFs reflects the growing institutional appetite for regulated crypto investment products, driven by Bitcoin’s price surge and increasing mainstream acceptance.

NYDIG’s CEO, Tejas Shah, highlighted the partnership’s role in facilitating this transition, noting, “Together, we can bridge the gap between traditional finance and the modern economy by facilitating access to Bitcoin as sound money.”

The resumption of U.S. Bank’s Bitcoin custody services follows a period of regulatory clarity, particularly after the repeal of the SEC’s Staff Accounting Bulletin No. 121 (SAB 121) in 2025. This guidance, introduced in 2022, required banks to hold equivalent capital for custodial crypto assets, making such services prohibitively expensive. Its repeal, alongside a pro-crypto stance from the Trump administration, has encouraged traditional financial institutions like U.S. Bank, Citigroup, and JPMorgan to re-enter or expand their presence in the digital asset space.

The Office of the Comptroller of the Currency (OCC) also issued guidance in March 2025, allowing banks to engage in crypto custody without prior approval, further easing barriers.

U.S. Bank’s reentry aligns it with competitors like BNY Mellon and Fidelity, who also offer digital asset custody, though crypto-native custodians like Coinbase still dominate, handling over 80% of spot Bitcoin ETF custody. With $11.7 trillion in assets under custody and administration as of June 30, 2025, U.S. Bank’s scale and reputation provide a competitive edge, offering clients stability in a volatile market.

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The bank is also exploring broader crypto applications, including stablecoins and other compliant cryptocurrencies, signaling a long-term commitment to digital finance innovation.

This move reflects a broader trend of traditional financial institutions embracing digital assets as Bitcoin gains legitimacy as an asset class. With ETF inflows driving market momentum and a projected crypto custody market growth of 12.82% CAGR by 2030, U.S. Bank’s strategic relaunch positions it to capture a growing share of institutional capital. The partnership with NYDIG ensures robust infrastructure, while the bank’s focus on compliance and security addresses the fiduciary standards demanded by institutional clients.

As Dominic Venturo, U.S. Bank’s chief digital officer, noted, “U.S. Bank has been at the forefront of exploring how digital assets can serve our clients.” This development not only enhances U.S. Bank’s offerings but also signals a maturing crypto ecosystem increasingly integrated with mainstream finance.