The United States Bank, a major US retail bank, is set to announce the launch of a cryptocurrency custody service as it becomes available to fund managers. According to CNBC, the new service will enable investment managers to store private keys for Bitcoin (BTC), Bitcoin cash (BCH) and Litecoin (LTC) via NYDIG, a sub-custodial agent.
Gunjan Kedia first hinted in the news, Vice President of Wealth Management and Investment Services at US Bank. However, more cryptocurrencies are expected to be added to the new custody service. The maneuver comes on the heels of other major banks joining the crypto bandwagon by enabling related offerings, specifically in the US.
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t think there is a single asset manager who is not considering that right now,” Kedia commented in an interview reported by CNBC. “What we have been hearing across the board, is that while every currency may not last — there may not be room for thousands — there is something about the potential of this asset class and the underlying technology that we would be wise to stand by,” she added.
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Service availability
In the initial phase, the product is aimed only at corporate managers with private money in the United States and the Cayman Islands, according to the banking institution. However, Kedia commented on the following on Bitcoin ETFs: “We have a lot of funds hoping to invest in ETFs. Some literally want to sign custody contracts on the day the SEC approves the ETF.”
Recently, Interactive Brokers LLC (NASDAQ: IBKR) announced the official launch of cryptocurrency trading services through Paxos, a blockchain infrastructure platform. The company said that cryptocurrency trading on the platform will have commissions ranging from 0.12% to 0.18% of the traded value, depending on the monthly volume.