In a significant move that strengthens its digital asset strategy, U.S. Bank has officially resumed its Bitcoin custody service for institutional investors and, for the first time, expanded its offerings to include Bitcoin exchange-traded funds (ETFs).
The service was originally launched in 2021 in partnership with NYDIG, which acts as the sub-custodian responsible for safeguarding the underlying Bitcoin. However, the program was suspended in early 2022 following regulatory changes that made crypto custody capital-intensive for banks. With the recent repeal of restrictive policies, U.S. Bank has now reopened the service under more favorable conditions.
The renewed custody solution is offered as an early access program through U.S. Bank’s Global Fund Services division. Institutional clients managing registered or private funds can securely store Bitcoin while also gaining access to administrative support for Bitcoin ETFs.
Executives at U.S. Bank highlight that the program provides institutional investors with a trusted, bank-owned custody solution that bridges traditional finance with digital assets. The collaboration with NYDIG ensures that the infrastructure meets the highest security and compliance standards.
This development reflects a broader trend of institutional adoption of Bitcoin, especially through spot Bitcoin ETFs, which have grown rapidly since their approval in early 2024. Leading ETFs have already accumulated billions in assets, showing the rising demand for regulated crypto investment products.
Other major banks, including Citigroup, are also exploring custody services for crypto-related assets such as ETFs and stablecoins, underscoring the expanding role of digital assets within traditional finance.
By reintroducing Bitcoin custody and supporting ETFs, U.S. Bank is positioning itself at the forefront of the institutional crypto market, signaling the increasing maturity and integration of digital assets into mainstream financial services.