Traditional financial institutions have gotten a taste of cryptocurrencies, and they want more. Take the case of an increasing number of banks providing cryptocurrency services to their clients. In fact, U.S. Bank is the latest to join the market.
U.S Bank to offer three cryptocurrency services
U.S. Bancorp, one of the leading financial institutions in the United States, has revealed that it would launch three cryptocurrency offerings to its clients. The bank is joining other leading financial institutions in entering the cryptocurrency space.
U.S. Bank announced in a blog post that it is launching three new initiatives to meet the growing demands of its clients. “The price of Bitcoin was less than $200 when U.S. Bank’s Blockchain and Cryptocurrency Practice was established in 2015. Today the price is over $54,000. As this market continues to grow, the cross-functional team of digital, technology and product experts across the bank supports our crypto/blockchain strategy and has been testing, planning and making moves behind the scenes in support of this disruptive technology to ultimately support our clients’ needs surrounding emerging digital assets,” the bank said.
Generally speaking, the three new initiatives will include new products and services, strategic relationships, and client wins in the cryptocurrency space.
U.S. Bank working on finding sub-custodian
U.S. Bank Global Fund Services will offer its customers a new cryptocurrency custody product after choosing a sub-custodian to provide fund servicing. Accordingly, the bank is working on its sub-custodian selection and will be providing more details in the coming weeks.
Additionally, the bank announced its investment in Securrency – a developer of institutional-grade blockchain-based financial and regulatory technology. U.S Bank was one of the leading investors in the project’s latest round of funding.
Finally, the bank has chosen to administer NYDIG’s ETF bitcoin fund in 2021. However, this decision is pending regulatory approvals. The move will build on and expand the company’s existing relationship with NYDIG.
Christine Waldron, chief strategy officer for U.S. Bank Global Fund Services, stated that “We’ve been active in this space for years – ensuring we are always best situated to serve our institutional clients – and these latest initiatives demonstrate our ongoing commitment and enthusiasm to grow this market.”
United States banks are venturing into the crypto space
Banks in the U.S. are providing their clients with more access to cryptocurrencies. For example, over the past month, Goldman Sachs and Morgan Stanley announced that they are offering their private clients access to Bitcoin funds.
JPMorgan Chase is also reportedly set to offer a similar service to its wealthy clients. That said, U.S. Bank entering the space is an indicator that banks in the country are opening up to cryptocurrencies.