The US Bank has confirmed that it is setting up custodial services to support private funds that hold Bitcoin, Litecoin and Bitcoin Cash.
US Bank customers in the Cayman Islands and the US will now be able to take advantage of the new cryptocurrency custody services. This follows a advertisement On Tuesday, which revealed the bank’s partnership with New York Digital Investment Group (NYDIG) as the first sub-custodian to offer the service. The retail bank added that it still had plans to expand its network of service providers.
By collaborating with NYDIG, the US Bank will support institutional clients with private funds by providing custodial services for private keys LitecoinAnd Bitcoin And Bitcoin Cash. Speaking about the bank’s new plans, Gunjan Kedia, Vice President of Wealth Management at the US Bank and Investment Services, noted that investor interest in the cryptocurrency industry has grown over the past year. She also noticed that her clients’ demand for fund services had skyrocketed.
“Our institutional fund and portfolio clients have accelerated their plans to offer cryptocurrency, and in response, we have made it a priority to accelerate our ability to provide custodial services.” announced.
However, the leader noted that the regulatory uncertainty surrounding the crypto environment was not entirely welcome. Ms. Kedia explained that this is why she is looking for a partner who strikes a reasonable balance between quality and risk management: NYDIG.
“Integrity and expertise are essential to protecting our clients’ most valuable assets, so we are pleased to offer our institutional clients NYDIG’s cutting-edge Bitcoin expertise, backed by the financial strength of the United States Bank.”
Kedia also claims that most asset managers are now taking cryptocurrency more seriously, not least due to the increased interest from clients. Wealth Management and Investment Services is a well-established asset manager with more than $8.6 trillion in assets under its care. The latest figures show an additional $282 billion in assets under management.
From Bank of New York Mellon to financial services firm State Street, US institutions are gradually adopting cryptocurrencies, despite the current regulatory reluctance. BNY Mellon announce Its digital currency strategy last February, presenting plans to create a unit of digital assets for Transfer, storage and issuance of digital assets. For its part, State Street has launched a business unit, State Street Digital, to provide custodial services for cryptocurrency.
Ms. Kedia felt that while digital assets were created to eliminate intermediaries, the need for these intermediaries themselves could not be ruled out. She said fund managers need the approval of financial organizations such as the US Bank to help allay clients’ concerns.