US Bancorp launches cryptocurrency custody service for investment managers

The representation of the Bitcoin cryptocurrency is shown in this illustration from September 24, 2021 on a keyboard in front of the binary code. REUTERS / Dado Ruvic / Illustration / File Photo

(Reuters) – US Bancorp announced Tuesday that it had launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and the Cayman Islands.

The fifth largest US bank said that bitcoins-focused financial services company NYDIG will act as a sub-custodian and that the service will soon support cryptocurrencies in addition to Bitcoin.

“Investor interest in cryptocurrency and demand from our fund services customers have increased significantly in recent years,” said Gunjan Kedia, vice chairman of the bank’s wealth management and investment services.

Despite wild price fluctuations in Bitcoin and increasing regulatory penetration, large financial institutions have invested and expanded their offerings in the cryptocurrency area.

In July, Business Insider reported that JPMorgan Chase & Co would provide access to cryptocurrency funds for all of its wealth management clients, while Citigroup Inc said in August that it is considering offering bitcoin futures trading for some institutional clients.

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