US Bancorp launches cryptocurrency custody service for investment managers

October 5 (Reuters) – US Bancorp (USB.N) announced on Tuesday that it has launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and the Cayman Islands.

The fifth-largest U.S. bank said bitcoin-focused financial services firm NYDIG will act as a sub-custodian, and the service will soon support cryptocurrencies in addition to bitcoin as well.

“Investor interest in cryptocurrency and our clients’ demand for fund services have grown significantly over the past few years,” said Gunjan Kedia, vice president of wealth management and investment services at the bank.

Despite the sharp swings in bitcoin prices and growing regulatory repression, major financial institutions have invested and expanded their offerings in the cryptocurrency arena.

In July, Business Insider US announced that JPMorgan Chase & Co (JPM.N) would allow access to cryptocurrency funds to all of its wealth management clients while Citigroup Inc (CN) said in August that it was considering offering bitcoin futures trading to some institutional clients.

Report by Sohini Podder in Bengaluru; Editing by Vinay Dwivedi

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