US Bank introduces cryptocurrency custody services, BFSI News, ET BFSI
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The first sub-custodian for supporting the new services of the bank will be New York Digital Investment Group (NYDIG).
NYDIG is a leading technology and financial services company and an arm of Stone Ridge Asset Management, dedicated to Bitcoin. Other cryptocurrencies like Ethereum will be soon added in the new services.
The new offering was launched to meet the growing demand and interests of the institutional investors and fund service clients in cryptocurrency, CNBC quoted Gunjan Kedia, Vice Chairman of US Bank’s wealth management and investment services division.
Even the legal sanctions and extreme volatility of Bitcoin did not deter big investors from continually investing in cryptocurrencies.
The new custody services will benefit the institutional investors in the following ways:
* The service will help investment managers store private keys for bitcoin, bitcoin cash and litecoin with the help of sub-custodian NYDIG.
* The services would provide the institutional investment managers having private funds in the US or Cayman Islands, safe storage solutions for bitcoins. Additional coin support would be added over time.
US Bancorp, the parent company of US bank has currently $559 billion worth of assets and serves national and global customers. US Bank established its Blockchain and Cryptocurrency Practice in 2015.
The bank had announced the launch of three cryptocurrency offerings in April itself to address the ever expanding investment needs of the clients.
* The first service was the custody service which is live now.
* The second service is regarding investment in Securrency, a developer of institutional-grade blockchain-based financial and regulatory technology.
* The third service that allows the US Bank to administer NYDIG’s Bitcoin Exchange Traded Funds (ETFs) in 2021 awaits regulatory approvals.
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