The U.S. bank announced details of its new cryptocurrency offerings and announced that it would support NYDIG’s Bitcoin Exchange Traded Funds (ETF) pending regulatory approval
According to a blog post, the US bank announced yesterday that it had completed cryptocurrency custody. The bank announced details of three new cryptocurrency initiatives to bring more services to its customers.
The first initiative concerns new products and services. The bank stated that “US. Bank Global Fund Services will offer a new cryptocurrency custodian product to clients that will be managed by a sub-custodian. We are finalizing our sub-custodian selection and will provide further details in the coming weeks once internal reviews are completed. “
The bank also spoke about its strategic relationships with some key cryptocurrency companies. The US bank invested in Securrency – a developer of blockchain-based financial and regulatory technologies at the institutional level and a partner of NYDIG.
The relationship with NYDIG forms the basis for the bank’s third initiative. The U.S. bank announced that it intends to manage NYDIG’s ETF Bitcoin fund this year pending regulatory approval. NYDIG filed for a Bitcoin ETF with the United States Securities and Exchange Commission (SEC) in February.
The SEC has yet to begin reviewing the NYDIG proposal, but the ETF is one of nine the regulator will review. Christine Waldron, Chief Strategy Officer of US bank Global Fund Services, welcomes these latest developments.
She explained that the bank has been in the cryptocurrency space since 2015 and is always in the best position to serve its institutional clients. “We made the selection. We are working on our operational integration and our risk and compliance process. “ She added. However, there is no confirmed timetable for the initiatives to officially launch.
The US bank is one of the most active traditional financial institutions in the cryptocurrency space. The bank said recent regulatory changes, particularly through the Office of the Currency Auditor (OCC), are opening up new opportunities for banks to continue serving their clients’ needs by protecting their valuable assets.
The bank believes tens of millions of Americans view cryptocurrencies as valuable assets, and traditional banks need to do more to ensure that digital assets are safe with them. “And we take an approach that ensures that there is adequate risk management and controls in place to effectively sell these types of products in a safe manner.” She added.