The fifth-largest bank in the United States by assets, U.S. Bank, plans to offer clients a custody service for cryptocurrencies. CNBC reports.
The initiative is aimed at institutional asset managers of private funds in the United States and the Cayman Islands. They will be able to hold private keys for Bitcoin, Bitcoin Cash and Litecoin wallets at the bank. Support for Ethereum and other cryptocurrencies will be implemented later.
The service is provided in cooperation with the firm [simple_tooltip content=’New York Digital Investment Group’]NYDIG[/simple_tooltip].
U.S. Bank expects to significantly expand the service’s reach if a bitcoin-[simple_tooltip content=’торгуемый на бирже фонд’]ETF[/simple_tooltip] is approved in the United States.
“Our clients are beginning to seriously consider cryptocurrencies as an asset class for diversification,” said bank officials.
Before onboarding clients to the service, U.S. Bank will verify the provenance of the cryptocurrency in line with standard identification and anti-money-laundering procedures.
U.S. Bank noted heightened investor interest in Bitcoin.
“Many agree that not all cryptocurrencies will survive. But this asset class and the technology underlying it have potential, so it would be prudent for us to support it,” the financial institution said.
In February 2021, Bank of New York Mellon announced the launch of custody services for Bitcoin and other cryptocurrencies.
In June, State Street announced the creation of a new division focused on digital assets and the decentralized finance sector.
In early September, the US-based Vast Bank allowed clients to trade cryptocurrencies from FDIC-insured accounts.
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