The US bank has confirmed that it is rolling out custody services that support private funds that hold Bitcoin, Litecoin, and Bitcoin Cash
US Bank customers in the Cayman Islands and the United States can now take advantage of new crypto custody services. This follows an announcement made Tuesday that revealed the bank’s partnership with New York Digital Investment Group (NYDIG) as the first sub-custodian to offer this service. The retail bank added that it still had plans to expand its network of providers.
By working with NYDIG, the U.S. Bank supporting institutional clients with private funds by offering custody services for Litecoin, Bitcoin and Bitcoin Cash private keys. Regarding the bank’s new plans, Gunjan Kedia, vice chairman of the U.S. Bank Wealth Management and Investment Services, notes that investor interest in the crypto industry has increased over the past year. She also noted that the demand from her fund service clients had increased significantly.
“Our fund and institutional custodian customers have accelerated their plans to offer cryptocurrencies, and in response we have made it a priority to make our ability to provide custody services a priority.” She said.
However, the executive found that the regulatory uncertainty surrounding the crypto environment was not entirely gratifying. Kedia stated that this was the reason they were looking for a partner who can strike a reasonable balance between quality and risk management: NYDIG.
“Integrity and expertise are critical to protecting our clients’ most valuable assets, so we’re excited to offer NYDIG’s industry-leading bitcoin expertise to our institutional clients, backed by the financial strength of the US bank.”
Kedia went on to claim that most money managers are now taking crypto more seriously, especially given rising client interest. The asset management and securities services division is an established asset manager with more than $ 8.6 trillion in assets under management. The latest figures show additional assets under management of $ 282 billion.
From the Bank of New York Mellon to the financial services firm State Street, institutions in the US are gradually moving to crypto despite the current regulatory indecision. BNY Mellon announced its crypto strategy back in February when it had plans to create a digital asset unit for “Transfer, Custody and Issue of Digital Assets”. State Street, for its part, has created a business unit, State Street Digital, to potentially provide crypto custody services.
Kedia believed that while digital assets were created to exclude intermediaries, the need for those very middlemen cannot be dismissed out of hand. She argued that fund managers need the approval of financial institutions like the US bank in order to allay their clientele’s concerns.