U.S. Bank provided details of its new cryptocurrency offerings, revealing that it would support the NYDIG’s Bitcoin exchange-traded funds (ETF) pending regulatory approval
According to a blog post yesterday, U.S. Bank revealed that it is finalising cryptocurrency custody services. The bank provided details of three new cryptocurrency initiatives as it looks to offer more services to its clients.
The first initiative is regarding new products and services. The bank stated that “U.S. Bank Global Fund Services will offer a new cryptocurrency custody product for customers with the engagement of a sub-custodian for fund servicing. We are finalising our sub-custodian selection and will announce additional details in the coming weeks once internal reviews are final.”
The bank also talked about its strategic relationships with some key companies in the cryptocurrency space. U.S. Bank invested in Securrency – a developer of institutional-grade blockchain-based financial and regulatory technology and a partner of NYDIG.
Its relationship with NYDIG forms the basis of the bank’s third initiative. U.S. Bank revealed that it intends to administer NYDIG’s ETF Bitcoin fund this year, pending regulatory approval. NYDIG filed for a Bitcoin ETF in February with the United States Securities and Exchange Commission (SEC).
The SEC is yet to start reviewing the NYDIG proposal, but the ETF is one of nine that the regulatory agency will review. Christine Waldron, chief strategy officer for U.S. Bank Global Fund Services, is excited about these latest developments.
She stated that the bank has been active in the cryptocurrency space since 2015 and they are always best situated to serve their institutional clients. “We have made the selection. We’re working through our operational integration and our risk and compliance process,” she added. However, there is no confirmed timeline for when the initiatives will officially launch.
U.S. Bank is one of the most active traditional financial institutions in the cryptocurrency space. The bank stated that recent regulatory changes, especially from the Office of the Comptroller of the Currency (OCC), opens new opportunities for banks to continue satisfying the needs of their customers by safeguarding their valuable assets.
The bank believes that tens of millions of Americans consider cryptocurrencies as valuable assets, and traditional banks need to do more to ensure the digital assets are safe with them. “And, we’re taking an approach that ensures proper risk management and controls are in place to effectively offer these types of products in a safe and secure way,” she added.
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