One of the largest banks in the US launches another cryptocurrency custody service
The United States Bank, one of the largest retail banks in the United States, is expected to announce on Tuesday that its crypto custody services will become available to fund managers, according to CNBC.
The service that will be offered to investment managers is designed to store the private keys of Bitcoin and other cryptocurrencies with additional security. The NYDIG sub-agent will assist the US Bank with this service. Coins such as Ethereum are expected to be supported after the launch of the offer.
The bank’s offer is likely to be linked to the gradual establishment of institutional players in the cryptocurrency market. While large corporations or funds are willing to accept clients wishing to invest in the cryptocurrency markets, custodial banks will be able to protect trillions of dollars worth of digital money. Major US banks such as Bank of New York Mellon, State Street and Northern Trust have already announced plans to hold digital assets.
The vice president of the bank, Gunjan Kedia, stated that their clients are looking to diversify their portfolios with digital assets as they bring more volatility and provide significant returns in a shorter time.
The US Bank is currently one of the largest players in the custodian market with $8.6 trillion in assets under custody and management. After the paper was released allowing national banks to provide custody of crypto-related assets, the bank conducted a survey of its largest clients to gauge the demand for such an offering.
The offered product is designed exclusively for institutional customers from the United States or the Cayman Islands. Demand for custody products is expected to rise once the Bitcoin ETF is approved by the Securities and Exchange Commission.