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US Bancorp has officially restarted its Bitcoin custody services for institutional investment managers, ending a pause that lasted more than three years. The decision comes after significant regulatory changes in the United States, including the reversal of rules that had previously discouraged banks from offering digital asset services. The move signals a broader trend of traditional banks re-entering the crypto market as regulatory clarity improves, creating new opportunities for fund managers and institutional clients.
Why US Bancorp Paused Its Crypto Program
Back in 2021, US Bancorp partnered with fintech firm NYDIG to launch crypto custody services. The offering was designed to provide secure storage solutions for institutional clients holding Bitcoin.
However, in early 2022, the program was put on hold after the U.S. Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 121 (SAB 121). This rule required custodians to treat crypto assets on their balance sheets as liabilities, a costly and restrictive condition for banks.
Without a clear framework, US Bancorp—and many other financial institutions—chose to suspend digital asset services until conditions improved.
Regulatory Changes Open the Door
The turning point came earlier this year after U.S. President Donald Trump issued an executive order aimed at “Strengthening American Leadership in Digital Financial Technology.”
This directive led to several key changes:
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The SEC withdrew SAB 121, removing the heavy balance sheet requirement.
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The Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve eliminated the “reputational risk” assessment for crypto services.
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The SEC and CFTC jointly clarified that registered exchanges could legally facilitate certain spot crypto transactions.
Together, these updates provided banks with the clarity and confidence they needed to resume or expand crypto-related services.
What US Bancorp Is Offering Now
According to the bank’s announcement, its Bitcoin custody services are initially being rolled out through an early access program for Global Fund Services clients. The target audience includes institutional investment managers with either registered or private funds seeking reliable custody solutions for Bitcoin.
Stephen Philipson, head of wealth, corporate, commercial, and institutional banking at US Bank, emphasized that the program is picking up where it left off:
“We had the playbook, and it’s sort of opening it up and executing it again.”
He added that the bank is also expanding its custody offerings to cover Bitcoin exchange-traded funds (ETFs), reflecting strong market demand for crypto-linked financial products.
Future Expansion Plans
While Bitcoin remains the focus, US Bancorp is actively exploring whether custody services can extend to other cryptocurrencies. The bank noted it would only consider assets that meet its risk and compliance standards, but the potential list could grow as demand from institutional clients increases.
Beyond custody, the bank is examining broader use cases for crypto and stablecoins across its wealth management, payments, and consumer banking services.
A Growing Trend Among Big Banks
US Bancorp is not alone in its renewed interest in crypto. Citigroup is also reported to be studying crypto custody solutions, including services for crypto-linked exchange-traded products. Other Wall Street firms are evaluating stablecoin applications and exploring payment settlement innovations tied to blockchain.
This suggests that the race among major U.S. banks to capture crypto market share is heating up again, especially as institutional adoption of Bitcoin ETFs accelerates.
Regulatory Agencies Push for Clarity
In a joint statement earlier this week, the SEC and the Commodity Futures Trading Commission (CFTC) clarified their stance on spot crypto trading in the U.S. They confirmed that exchanges registered with the agencies are not barred from facilitating spot commodity trades, a position that paves the way for broader access to digital asset markets.
CFTC Acting Chairman Caroline D. Pham said the new approach marks a turning point:
“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over.”
SEC Chairman Paul Atkins echoed the sentiment, affirming that market participants should be free to choose where to trade spot crypto assets, with the SEC and CFTC working together to encourage both innovation and competition.
What This Means for the Crypto Market
The relaunch of Bitcoin custody by US Bancorp is a strong indicator that banks believe digital assets are here to stay. With regulatory uncertainty easing and demand for institutional Bitcoin products rising, more traditional financial institutions may soon follow suit.
For fund managers, this development offers an expanded set of options to securely store and manage Bitcoin holdings. For the wider crypto industry, it signals that U.S. banks are once again positioning themselves as active participants in the evolving digital asset ecosystem.
