The US Bank Bitcoin custody service is officially back in operation following a multiyear pause. One of the largest financial institutions in the country, U.S. Bank, has reopened its digital asset vault to meet rising institutional demand for secure Bitcoin storage. Initially launched in 2021, the service was halted in 2022 due to murky U.S. regulations. Now, thanks to improved regulatory clarity, US Bank is resuming its cryptocurrency custody efforts in partnership with NYDIG, targeting institutional investors and Bitcoin ETF managers.
This marks a major shift in Wall Street’s relationship with crypto, especially as traditional finance deepens its role in digital asset infrastructure. The resurgence of the US Bank Bitcoin custody service signals mainstream adoption accelerating again—just as key players become more comfortable operating within clearer regulatory boundaries.
Institutional investors back in the driver’s seat
Institutional investors are once again the core clientele for the US Bank Bitcoin custody service. These include registered investment advisors, hedge funds, and asset managers—especially those involved with Bitcoin ETFs. With investor interest bouncing back in 2025 after a turbulent bear phase, the need for secure, regulated digital asset storage has grown substantially.
Many of these fund managers previously relied on crypto-native firms like Coinbase for storage, but as trust in bank-backed operators increases, financial giants like US Bank are re-entering the scene. Stephen Philipson, vice chair of U.S. Bank Wealth and Institutional Banking, confirmed that the bank had identified sufficient client demand to justify relaunching its custody operations, especially for Bitcoin ETFs.
NYDIG partnership strengthens the foundation
The relaunch of US Bank’s Bitcoin custody service is powered by its continued partnership with NYDIG. As one of the most trusted custodians in the digital asset space, NYDIG brings both the technological infrastructure and the compliance experience to support large-scale institutional adoption.
This collaboration enhances the credibility of the US Bank offering and ensures that stringent security protocols meet the expectations of institutional investors. As cryptocurrency custody regains momentum, partnerships like these—between traditional banking institutions and blockchain-native firms—are likely to define the future of asset management.
Regulatory clarity opens new doors
The return of the US Bank Bitcoin custody service was prompted in large part by changes in the regulatory landscape. In January 2025, the Federal Reserve officially rescinded a crypto supervisory program that had created significant compliance challenges for banks holding digital assets. This move unlocked new potential for banks to re-engage with cryptocurrency services without facing potential fines or conflicting oversight.
Regulatory clarity has been one of the most requested components by financial institutions on the sidelines of the crypto market. With those roadblocks easing, we can expect more major banks to take similar steps. The merging of traditional finance infrastructure with cryptocurrency custody is, at this point, an unstoppable trend.
Cryptocurrency custody expands beyond Bitcoin
Although the current focus of US Bank is strictly Bitcoin, there are signs that the offering could soon expand. According to announcements, the bank is actively evaluating demand, risk, and regulatory concerns before potentially offering custody for other digital assets. This phased rollout ensures compliance while also building trust among investors who prefer a conservative approach.
Cryptocurrency custody represents a critical pillar in the institutional adoption of digital assets. As Bitcoin ETFs continue to gain approval and traction, the need for reliable, secure storage solutions grows in parallel. US Bank’s move reflects this evolution of investor needs.
Bitcoin ETFs driving renewed institutional interest
The meteoric rise of Bitcoin ETFs in early 2025 has revived institutional interest in Bitcoin as a long-term asset. With fund flows increasing and new products gaining regulatory approval, many investment managers are actively seeking custody solutions capable of scaling with regulatory oversight and investor expectations.
Historically dominated by platforms like Coinbase and Fidelity Digital Assets, the custody landscape is now seeing a shift toward commercial banks like US Bank. The bank’s emphasis on Bitcoin ETF custody aligns it directly with this booming segment of institutional crypto finance.
Federal Reserve’s retreat signals policy evolution
The Federal Reserve ending its crypto supervisory program was a turning point. Previously, banks faced onerous compliance hurdles when attempting to custody cryptocurrency. That guidance—initially introduced as a risk-mitigation strategy—unintentionally stifled innovation and discouraged traditional banks from engaging with crypto assets.
However, 2025 is shaping up to be the year of recalibration. With supervisory pressures easing, institutions like US Bank are again exploring how to responsibly participate in digital asset services. The US Bank Bitcoin custody service reflects a more permissive environment that seeks to balance innovation with investor protection.
Frequently asked questions about the US Bank Bitcoin custody service (FAQ)
What is the US Bank Bitcoin custody service?
It is a secure digital asset storage solution offered by U.S. Bank to institutional investors, including ETF managers. The service currently supports Bitcoin and could eventually expand to other cryptocurrencies.
Who is the US Bank custody service for?
The service is aimed at institutional investment managers, hedge funds, and asset managers—particularly those involved in Bitcoin ETFs.
Why did US Bank pause the service earlier?
The bank paused its custody service in 2022 due to regulatory uncertainty. It resumed operations in 2025 after the Federal Reserve rescinded a crypto oversight program that had created compliance concerns.
Is NYDIG still involved in the custody service?
Yes. NYDIG, a leader in digital asset custody, continues to partner with US Bank to provide the backend custody infrastructure.
Will US Bank support custody for other cryptocurrencies?
Not yet, but the bank is evaluating client demand and regulatory risk before expanding beyond Bitcoin in the future.
Sources to this article
BlockAI (2025) US Bank Restarts Bitcoin Custody Service After Years-Long Pause. defidonkey.com
NYDIG (2025) Custodial Infrastructure Partnership Overview. Retrieved from https://nydig.com
Federal Reserve (2025) “Termination of Crypto Supervisory Guidance,” Official Memo, January 2025.
Philipson, S. (2025) “Institutional Demand and Custody Strategy,” U.S. Bank Press Briefing.
