US Bancorp resumes bitcoin custody with ETF support
The bank has reopened digital asset safekeeping after regulatory clarity, adding institutional bitcoin ETF custody to its services
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US Bancorp has resumed bitcoin custody services for institutional clients, reopening a product it first launched in 2021 but suspended in late 2022 during heightened regulatory scrutiny.
The move, originally reported by Bloomberg, follows new clarity from federal regulators on how banks can serve as qualified custodians for digital assets. The Minneapolis-based lender, the fifth-largest commercial bank in the United States, will now also provide custody for spot bitcoin exchange-traded funds (ETFs), which the Securities and Exchange Commission (SEC) approved last year after years of industry pressure.
Data from Blockworks Research shows cumulative inflows into crypto ETFs remain dominated by bitcoin products, which account for nearly 70% of total flows. BlackRock’s iShares Bitcoin Trust (IBIT) leads with $58.4 billion in assets and $72.9 million in recent net inflows, while Fidelity, Ark, and others also saw strong demand.
Bancorp’s expansion to ETF custody reflects institutional demand for secure handling of bitcoin funds managed by firms like BlackRock and Fidelity, which have drawn billions of dollars in inflows since approval.
The decision highlights a policy recalibration among regulators, including the SEC and the Office of the Comptroller of the Currency (OCC), after years of tension over crypto banking.
With the SEC’s rescission of Staff Accounting Bulletin 121 (via SAB 122), banks are no longer required to carry custodial crypto assets on their balance sheets, easing capital burdens.
Custody services allow banks to securely store cryptographic keys for clients, a critical function for asset managers who must comply with fiduciary standards. US Bancorp’s reentry brings it in line with peers such as BNY Mellon and State Street, both of which also offer regulated digital asset custody.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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