Amid high demand from institutional clients, US Bank announced a new cryptocurrency custody service. “Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” the bank stated.
US Bank announced on Tuesday, 5th October, that its cryptocurrency custody services are now available to Global Fund Services customers.
US Bancorp is an American financial holding company based in Minneapolis, the parent company of the US Bank, the fifth-largest US commercial bank. As of 30th June, it had about 70 thousand employees, and its assets amounted to $559 billion (~£411 billion). US Bancorp serves millions of customers locally, nationally and internationally. As of 30th June, US Bank Wealth Management and Investment Services has more than $8.6 trillion (~£6 trillion) in assets under custody and administration and $282 billion (~£207 billion) in assets under management worldwide.
Here is what we know about the service at the moment:
“The services are intended for institutional investment managers with private funds in the US or Cayman Islands who would like a safekeeping solution for bitcoin – with additional coin support coming soon.”
“NYDIG, a leading technology and financial services company dedicated to Bitcoin, is the first crypto sub-custodian announced in the bank’s network of providers,” the statement said. New York Digital Investment Group (NYDIG) is the Bitcoin investment arm of Stone Ridge Asset Management, writes bitcoin.com.
Gunjan Kedia, Vice Chairman of US Bank Wealth Management and Investment Services, commented: “Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years. Our fund and institutional custody clients have accelerated their plans to offer cryptocurrency and, in response, we made it a priority to accelerate our ability to offer custody services.”
US Bank first focused its attention on the blockchain and cryptocurrency sphere in 2015, when the price of Bitcoin was less than $200. At the time of writing, the price of BTC is hovering around $50,000.
In April, the bank announced three crypto areas that it is working on to meet the “growing needs of clients.” The first was the cryptocurrency custody service, which has already been launched. The second was an investment in Securrency, a developer of blockchain-based institutional technology for financial and regulatory management. Third, US Bank has been chosen to manage the NYDIG’s ETF Bitcoin fund this year, pending regulatory approvals.
The irony is that while Bitcoin was created to get rid of financial intermediaries, those same intermediaries are recreating the old financial order to serve crypto holders.
I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.
Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.
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