US Bank to Offer Bitcoin Custody Services
U.S. Bank, a major retail bank in the United States, is set to announce the launch of a cryptocurrency custody service with availability to fund managers. According to CNBC, the new service will enable investment managers to store private keys for Bitcoin (BTC), Bitcoin cash (BCH), and Litecoin (LTC) via NYDIG, a sub-custodian.
Gunjan Kedia first hinted at the news, vice-chair of the bank’s wealth management and investment services division in U.S. Bank. However, more cryptos are expected to be added to the new custody service. The maneuver comes in the wake of other major banks joining the crypto bandwagon by enabling related offerings, specifically in the US.
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t believe there’s a single asset manager that isn’t thinking about it right now,” Kedia commented in an interview quoted by CNBC. “What we were hearing across the board, is that while every currency might not survive – there may not be room for thousands of coins— there’s something about the potential of this asset class and the underlying technology that would be prudent for us to stand up support for it,” she added.
In an initial phase, the product is only aimed at institutional managers with private funds in the United States and the Cayman Islands, according to the banking institution. Still, Kedia commented the following on Bitcoin ETFs: “We have a lot of funds who are hoping to invest in ETFs. Some literally want custody contracts signed the day the SEC approves an ETF.”
Recently, Interactive Brokers LLC (NASDAQ: IBKR) announced the official launch of its cryptocurrency trading services through Paxos, a blockchain infrastructure platform. The firm said that crypto trading on the platform would have commissions of between 0.12% and 0.18% of the trade value, depending on the monthly volume.
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