US Bancorp (USB) Returns to Bitcoin Custody Services Amid Regulatory Shifts

US Bancorp (USB) reopens cryptocurrency custody services after a four-year break, citing US regulatory changes as the reason. They are working with NYDIG to offer custody services for Bitcoin, starting with registered funds and ETFs. Other financial institutions like BNY Mellon and Fidelity Investments are also offering similar services.

The resurgence in interest from traditional financial institutions is due to regulatory changes under the current US administration. A 2022 advisory notice from the SEC under the Trump administration, which considered crypto custody services illicit, was rescinded. The US government aims to become the crypto capital of the world, ranking second in the Chainalysis 2025 Global Adoption Index behind India.

US Bancorp’s return to offering cryptocurrency custody services aligns with a broader trend of traditional financial institutions entering the space. Regulatory changes and a push by the US government to become a global crypto hub have fueled this renewed interest. The US now ranks second in the world for cryptocurrency adoption, behind only India.