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America’s fifth-largest bank launches crypto custody service

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The fifth-largest commercial bank in the United States in terms of assets, U.S. Bank plans to offer clients a custodial service for working with cryptocurrencies. CNBC reported this.

Thus, the initiative focuses on institutional managers of private funds in the United States and the Cayman Islands. They will be able to store private keys from Bitcoin, Bitcoin Cash and Litecoin wallets in the bank. Support for Ethereum and other cryptocurrencies will be implemented later. Moreover, the service is provided in cooperation with New York Digital Investment Group (NYDIG).

U.S. Bank expects to significantly expand the coverage of the service if the Bitcoin ETF is approved in the United States. “Our clients are beginning to seriously consider cryptocurrencies as an asset class for diversification,” the bank’s representatives said.

Increased investor interest in Bitcoin

Before connecting customers to the service, U.S. Bank will verify the origin of the cryptocurrency in accordance with standard identification and anti-money laundering procedures. In addition, U.S. Bank noted the increased interest of investors in Bitcoin.

“Many agree that not all cryptocurrencies will survive. But this asset class and the underlying technology have potential. So it is more prudent for us to support it,” the financial institution noted.

Recall that in February 2021, Bank of New York Mellon announced the launch of services for storing cryptocurrencies.

The first in US to receive permission

Previously in June, State Street announced the creation of a new division focused on digital assets and the decentralized finance (DeFi) sector. “The financial industry is transforming into a digital economy. And we see digital assets as one of the most significant forces influencing our industry over the next five years”. Said Ronald O’Hanley, the CEO and Chairman of State Street Corporation.

Later in early September, the American Vast Bank allowed customers to trade cryptocurrencies from Federal Deposit Insurance Corporation (FDIC) insured accounts. The financial institution was the first in the United States to receive such permission from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve System.

The list of assets includes Bitcoin, Ethereum, Cardano (ADA), Filecoin (FIL), Litecoin (LTC), Orchid (OXT) and Algorand (ALGO), according to Forbes.

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