US Bank Launches Crypto Custody With NYDIG Backing

The service will support private funds holding BTC, BCH and LTC, with an ETH option in the works, a source told CoinDesk.

Oct 5, 2021 at 5:25 p.m. UTC
Updated Oct 5, 2021 at 6:07 p.m. UTC

U.S. Bank on Tuesday launched its cryptocurrency custody program with NYDIG, a major bitcoin investment firm, helping out.

Crypto plans from the fifth-largest bank in America were first teased in April.

The new service supports institutional crypto funds invested in bitcoin, bitcoin cash and litecoin, according to a source. It will only be open to private fund managers in the U.S. and the Cayman Islands. NYDIG will handle their private keys as the bank’s sub-custodian.

It’s not the first time the pair have tied up. Minnesota-based U.S. bank agreed to serve as administrator for NYDIG’s planned bitcoin exchange-traded fund in April, as CoinDesk previously reported.

“Our fund and institutional custody clients have accelerated their plans to offer cryptocurrency and, in response, we made it a priority to accelerate our ability to offer custody services,” Gunjan Kedia, vice chair of U.S. Bank Wealth Management and Investment Services, said in a press release.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Danny is a business reporter at CoinDesk.