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- The US bank will provide crypto custody services to investment managers, according to CNBC.
- The US Bank is not the first major player to take such a step.
- The decision may indicate that institutional interest in the cryptocurrency is on the rise.
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US Bank fifth largest The US retail bank announced the bitcoin custodian service in a press release today.
Major Banks Open for Crypto Custody Service
US Bank which is currently has a nursery $8.6 trillion In Assets, you will initially provide custody services for Bitcoin.
Custody services on Bitcoin Cash, Litecoin, Ethereum and other assets are likely to come over time, according to the US bank’s Vice President of Wealth Management and Investment Services, Gunjan Kedia.
THis move may indicate that deep-rooted US financial institutions and their clients are becoming increasingly interested in cryptocurrencies. in an interview“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 said.
While fund managers can purchase digital assets themselves (and thus have to store their private keys), want a lot Legacy financial institutions already protecting trillions of assets to secure their crypto assets.
The service will be offered in partnership with NYDIG, a Bitcoin subsidiary of Stone Ridge Asset Management.
Other banks also offer crypto services
Other large banks have already taken similar steps, apparently in succession. In February, BNY Mellon announced that will advance custodian of its customers Bitcoin. Roman Rigelman, CEO of Asset Services and Head of Digital Services at BNY, acknowledged that “digital assets are becoming part of the mainstream.”
In March, within days of Morgan Stanley advertisement Three different funds in which their customers can be exposed to Bitcoin, Goldman Sachs announced It will launch a “full suite” of investment products in digital assets. Marie Rich, Vice President of Digital Assets at Goldman, said that blockchain could be the “new dawn of the Internet.”–As well as the desire to hedge against inflation–It may explain the interest of their customers.
Furthermore, State Street In April, they announced their cryptocurrency trading platform through the “Smart Custody Guidance Program.” Later that month, JP Morgan An advertisement for its Bitcoin fund along with custody services.
As of May, Hundreds of banks Across the US has already enrolled in the New York Digital Investment Group (NYDIG) Crypto Custody Program. NYDIG President, Yan Zhao, to caution That banks will lose customers to newer companies like Coinbase, Square, Paypal and Robinhood if they don’t offer crypto services.
Survey conducted in August of UK Institutional Investors and Wealth Managers Found that nearly three-quarters It sought to increase exposure to cryptocurrency between now and 2023, and some major banks are now rolling out critical infrastructure to make it happen Easier for businesses Let’s do it.
Disclaimer: The author of this piece owns BTC, ETH, and many other cryptocurrencies at the time of writing.
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