In Brief:
- U.S. Bank, will offer cryptocurrency custody services to fund managers.
- With the help of sub-custodian NYDIG, investment managers will be able to store private keys for bitcoin, bitcoin cash, and litecoin.
- Over time, they expect to support other coins such as Ethereum.
US Bank, the nation’s fifth-largest retail bank, announced that it has begun offering cryptocurrency custody services to fund managers.
Services are available for institutional investors managing private funds in the United States or the Cayman Islands who are looking for a bitcoin safekeeping solution.
According to CNBC, The move is the latest sign that established financial players are beginning to accept cryptocurrencies as a legitimate asset class.
According to Gunjan Kedia, vice chair of the bank’s wealth management and investment services division, the offering will help investment managers store private keys for bitcoin, bitcoin cash, and litecoin. Cryptocurrency interest from investors and client demand for funds has grown dramatically in recent years. In the future, ethereum and other coins will be supported.
Kedia further added that Regulatory dynamics and new technology platforms continue to complicate the market environment. Their clients expect an offering that adheres to the U.S. Bank’s exceptional quality standards and risk management policies.
To safeguard our clients’ most valuable assets, we take steps to ensure the firm’s integrity, expertise, and financial strength are unmatched in the industry.
The Securities and Exchange Commission (SEC) is in a dilemma about providing approvals on Bitcoin ETF. However, Investors have been waiting for this approval for a long time.
Kedia also said that “We have a lot of funds who are hoping to invest in ETFs.Some literally want custody contracts signed the day the SEC approves an ETF”.
NYDIG (New York Digital Investment Group) which is a leading technology and financial services firm dedicated to Bitcoin, says “NYDIG is excited to partner with U.S. Bank to provide its customers with a custody solution that meets the highest security, compliance, and regulatory standards.”
Robert Gutmann, co-founder and CEO of NYDIG. “Together, we can facilitate access to this growing asset class while delivering the best-in-class experience that U.S. Bank’s clients have come to expect.”
