US Bank Resumes Bitcoin Custody Amid Eased Rules

US Bank, the fifth-largest bank in the US, has resumed its cryptocurrency custody operations after a four-year hiatus.

The bank will offer custody for Bitcoin and support for exchange-traded funds (ETFs). These services target institutional investment managers with registered or private funds.

US Bank Relaunches Bitcoin and ETF Services

US Bankcorp has relaunched its custody services with a new focus on Bitcoin and Bitcoin ETFs. The initiative is designed to give institutional fund managers secure, regulated access to digital assets. It marks the most significant new step since the bank entered crypto custody in 2021.

Stephen Philipson, a vice chair at US Bank, said the restart underscores their commitment to institutional investors.

“This is about giving fund managers reliable custody and administration for Bitcoin ETFs, which we see as central to institutional demand,” he said.

And we are back! We’re resuming #cryptocurrency custody services for institutional investment managers with registered or private funds—offering secure safekeeping for #bitcoin, with @NYDIG as sub-custodian. ₿

— U.S. Bank (@usbank) September 3, 2025

US Bankcorp introduced digital asset custody in 2021, covering Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and other altcoins. However, the service was halted the following year after the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 forced institutions to recognize crypto assets on balance sheets, making custody services financially burdensome.

The move reflects regulatory changes under the Trump administration and rising institutional demand for secure Bitcoin services. In August, the Federal Reserve ended a supervisory program that had monitored banks engaged in crypto since 2023. The change eased oversight that many industry groups had criticized as “crypto debanking.”

Teams Up With NYDIG to Bolster Bitcoin Custody

US Bancorp joins other major financial institutions, including BNY Mellon and State Street, in offering regulated digital asset custody. Analysts expect the move to intensify competition as institutional demand for Bitcoin ETFs accelerates.

US Bank is partnering with New York Digital Investment Group (NYDIG), an institution specializing in Bitcoin-focused financial services and infrastructure, to manage operations. NYDIG CEO Tejas Shah said the collaboration reflects the bank’s ambition to connect traditional finance with digital assets.

“Together, we can bridge the gap between traditional finance and the modern economy by facilitating access for Global Fund Services clients to Bitcoin as sound money, delivered with the safety and security expected by regulated financial institutions,” Shah said.