U.S. Bancorp Resumes Bitcoin Custody for Institutional Clients

The banking giant has confirmed it will resume Bitcoin custody services for institutional clients, marking a dramatic reversal from the restrictive climate that forced it out of the sector in 2022.

The turnaround is directly tied to President Donald Trump’s regulatory reset. His administration recently scrapped SAB 121, the accounting bulletin from the Biden years that effectively barred banks from offering digital asset custody. With that obstacle gone, Wall Street institutions are suddenly finding themselves free to revisit abandoned crypto projects.

From Halt to Relaunch

Back in 2022, U.S. Bancorp unveiled a partnership with Bitcoin financial services firm NYDIG to provide custody for fund managers. The initiative barely got off the ground before Washington regulators slammed the brakes with new compliance hurdles. That freeze has now thawed, and the bank says NYDIG will again serve as its sub-custodian, responsible for safeguarding the actual coins while Bancorp manages client relationships.

Opening the Door to ETFs

This time, the relaunch is broader. Alongside direct Bitcoin custody, the bank will also offer support for exchange-traded funds, giving asset managers additional tools to navigate the digital asset market. “Clarity on regulation allows us to expand our solutions with confidence,” said Stephen Philipson, U.S. Bancorp’s head of commercial and corporate banking.

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Looking Beyond Bitcoin

While Bitcoin is the immediate focus, executives hinted that other cryptocurrencies could be added if they meet strict risk and compliance reviews. For now, the move signals that blue-chip financial firms are willing to re-engage with crypto as long as the rules of the game are clearly defined.

The timing underscores how quickly sentiment has shifted under Trump. Just months ago, traditional banks were retreating from digital assets. Now, with regulatory barriers easing, one of America’s biggest lenders is betting again on Bitcoin custody as demand from institutional investors quietly builds.

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