US Bank announced that its crypto custody service is now available to fund managers. This is happening against the backdrop of the rapid growth of interest in cryptocurrencies among investors.
US Bank, the fifth-biggest retail bank in the country, announced that its crypto custody service is available to fund managers, CNBC first reported. The new proposal will help investment managers store private keys for Bitcoin, Bitcoin Cash, and Litecoin through the NYDIG sub-custodian, according to Gunjan Kedia, vice chair of the bank’s wealth management and investment services division. Support for other coins such as Ethereum is expected over time.
The move is a sign that reputable financial players are starting to accept cryptocurrencies as a legitimate asset class. Major players, including Bank of New York Mellon, State Street, and Northern Trust have announced plans to store digital assets.
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class,” Kedia said in an interview. “I don’t believe there’s a single asset manager that isn’t thinking about it right now.”
Some investment clients already have positions in bitcoin, while others are awaiting the start of custody services, she said. According to Kedia, US Bank is one of the first institutions to introduce a real deposit product.
According to the bank, the product is intended only for institutional managers with private funds in the US or the Cayman Islands. But if and when the US Securities and Exchange Commission approves a Bitcoin ETF, demand is expected to rise.
“We have a lot of funds who are hoping to invest in ETFs,” Kedia said. "Some literally want custody contracts signed the day the SEC approves an ETF."
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
