US Bancorp, a global financial institution, is relaunching its cryptocurrency safekeeping services, according to a Bloomberg report published on September 3rd.
This move comes after recent changes in regulations that have loosened restrictions on the amount of capital banks must hold when dealing with digital assets.
The banking giant initially launched its crypto custody program in 2021 through a collaborative effort with NYDIG. However, the service was temporarily suspended following guidance from the Securities and Exchange Commission (SEC) that required financial institutions to allocate additional capital reserves to cover potential risks associated with cryptocurrency holdings.
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The previous capital requirements were relaxed following decisions made during President Trump’s time in office, leading US Bancorp to resume its crypto custody plans.
Stephen Philipson, who is in charge of US Bancorp’s institutional section, stated that a well-defined strategy was already in place.
He mentioned that while the initial focus is on offering custody services for Bitcoin
The initial emphasis will be on assisting registered investment funds and providers of Bitcoin exchange-traded funds (ETFs) by providing secure storage solutions for their digital assets. By taking this step, US Bancorp is positioning itself to cater to clients operating within a market environment characterized by increasing activity and tighter regulatory oversight.
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