US Bancorp Relaunches Crypto Custody Following SEC Rule Rollback

     

Bank resumes digital asset services for institutions as regulatory environment shifts under Trump administration

US Bancorp has revived its digital asset custody platform for institutional clients after the Trump administration reversed an SEC rule that had previously restricted banks from holding capital against crypto activities.

Stephen Philipson, head of the bank’s institutional division, said the move is a continuation of prior plans. “We had the playbook and it’s sort of opening it up and executing it again,” he noted, adding that demand will dictate how the service scales. The bank is also exploring broader applications for digital assets in wealth management and consumer payments.

The Minneapolis-based lender, the fifth-largest commercial bank in the US, originally launched its custody service in 2021 with fintech partner NYDIG. It was later paused due to SEC guidance but is now moving forward again with renewed momentum.

Bitcoin custody launches first, expansion possible

The relaunched service will start with Bitcoin custody for registered investment funds and ETF issuers, with potential plans to expand to other cryptocurrencies pending internal risk and compliance reviews.

While crypto-native companies like Coinbase, BitGo, and Anchorage Digital have dominated custody services, recent federal guidance is opening the door for traditional banks to step in. In 2022, BNY Mellon became the first major US bank to safeguard Bitcoin and Ether for institutional clients.

Traditional banks increasingly target crypto custody

US Bancorp’s revival of its custody offering comes as more traditional banks expand into the sector.

In July, Deutsche Bank announced it would launch a digital asset custody service in 2026 in partnership with Bitpanda’s tech division, enabling clients to store Bitcoin and other cryptocurrencies.

Meanwhile, Citigroup has been evaluating crypto custody and payment services to tap into a market supported by new pro-crypto regulations and Trump-era reforms.