As more institutions race to meet clients’ demand for cryptocurrencies, US Bank, the fifth-largest retail bank in the United States, is launching a crypto custody service available to fund managers. US Bank to offer Bitcoin custody service for institutional clients.
Potential Room For Several of Coins
According to CNBC; US Bank has partnered with New York Digital Investment Group (NYDIG) to provide crypto services for Bitcoin, Litecoin, and Bitcoin Cash. Other cryptocurrencies; such as Ether (Ethereum), will be supported in the near future.
The new initiative comes a year after the Office of the Comptroller of the Currency (OCC); an independent bureau within the United States Department of Treasury; issued a paper allowing national banks to offer crypto asset custody.
Gunjan Kedia, a senior executive in US Bank’s wealth management division; polled the bank’s most important clients to gauge their interest in cryptocurrencies. Her findings revealed a surge in interest in digital asset services.
Customers also wanted the bank to “move quickly” because other financial institutions; such as custody and Bitcoin trading funds, were already offering crypto services. Kedia also discovered that several clients have already invested in Bitcoin and other cryptocurrencies.
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t believe there’s a single asset manager that isn’t thinking about it right now.” – Kedia told CNBC in an interview
Institutional Clients’ Demand for Crypto is Higher Than Ever
Because the Securities and Exchange Commission (SEC) has yet to approve a Bitcoin ETF; institutional managers with private funds in the US or Cayman Islands will be able to access crypto custody; according to the US Bank. Kedia added that some clients want custody contracts signed if the SEC finally approves a crypto ETF. US Bank to offer Bitcoin custody service for institutional clients.
The rise of digital assets and blockchain technology in the traditional financial system has not gone unnoticed. Nonetheless, most institutional investors are aware of their potential business applications. Arab Bank Switzerland, for example, recently enabled its clients to store, stake, and trade XTZ, Tezos’ native utility token.
Bank of America is one of the institutions that has recognized the potential of cryptocurrencies. According to CryptoPotato, the multinational recently published a report titled “Digital Assets Primer: Only the First Inning;” in which it stated that digital assets and the decentralized finance space have grown to be “too large to ignore.”
Source: Cryptopotao
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