U.S. Bancorp Resumes Bitcoin Custody With NYDIG
U.S. Bancorp revives its Bitcoin custody service with NYDIG, now targeting ETFs and registered funds.
- U.S. Bancorp restarts Bitcoin custody with NYDIG.
- Service supports select ETFs and registered funds.
- Revival follows rollback of SEC capital requirements.
U.S. Bancorp is re-entering the crypto space, resuming its Bitcoin custody service in partnership with NYDIG. According to Bloomberg, the service — which was originally launched in 2021 but paused due to SEC capital rules — is now back on track and initially limited to select registered investment funds and ETF providers.
The decision to pause came after the SEC required banks to hold additional capital against crypto holdings, a move that made such services financially burdensome. However, with the rescinding of those requirements under President Trump’s second term, U.S. Bancorp sees a clearer regulatory path and renewed demand for institutional crypto solutions.
Targeting ETFs and Institutional Investors
The renewed custody service isn’t open to retail users — at least not yet. U.S. Bancorp and NYDIG are focusing exclusively on registered funds and ETF providers. This aligns with the recent surge in institutional interest following the approval of spot Bitcoin ETFs in the U.S.
By reviving this Bitcoin custody service, U.S. Bancorp positions itself among a growing number of traditional financial institutions that are adapting to client demand for secure and regulated crypto exposure. NYDIG’s infrastructure will play a critical role in ensuring that these services meet institutional standards for security, compliance, and asset protection.
Regulatory Landscape Shifts Again
The key factor behind this move is the change in regulatory posture. The SEC’s earlier capital guidance was a major roadblock for banks, effectively putting a freeze on custody services. Its rollback signals a friendlier stance toward crypto banking activities, giving institutions the green light to re-engage.
As crypto regulation continues to evolve, more banks may follow U.S. Bancorp’s lead. For now, this move demonstrates that crypto, particularly Bitcoin custody services, is once again being taken seriously by major financial players.
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