US Bancorp has launched new cryptocurrency custody services for institutional investment managers with private funds in the US and Cayman Islands.
Bitcoin-based financial services firm NYDIG will act as the sub-custodian for the service, which will support cryptocurrencies other than bitcoin in the future.
The bank said that the new custody services are now available to its Global Fund Services clients.
US Bank Wealth Management and Investment Services vice chair Gunjan Kedia said: “Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years.
“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.”
As part of its strategy to expand in the cryptocurrency space, US Bank recently invested in blockchain-based financial and regulatory technology developer Securrency.
Commenting on the latest development, NYDIG co-founder and CEO Robert Gutmann said: “NYDIG is excited to partner with US Bank to provide its customers with a custody solution that meets the highest security, compliance and regulatory standards.
“Together, we can facilitate access to this growing asset class while delivering the best-in-class experience that US Bank’s clients have come to expect.”
Meanwhile, the increasing popularity of cryptocurrencies have attracted the interest of a slew of financial institutions in recent years.
This August, investment platform Titan launched an actively managed portfolio of cryptocurrency assets for investors in the US.
In September, Crypto Finance received a regulatory nod from FINMA for its Swiss crypto asset fund.
The same month, investment management company Invesco teamed up with upstart digital asset firm Galaxy to launch a range of funds backed by cryptocurrencies including bitcoin.
In July, State Street teamed up with Lukka to expand digital asset fund administration capabilities for its alternative investment clients.