US Bank Revives Crypto Custody With NYDIG Partnership Amid Bitcoin ETF Boom

US Bank, the fifth-largest lender in the United States, has restarted its cryptocurrency custody business, marking its biggest digital asset push since first testing the waters in 2021.

The relaunch centers on custody services for Bitcoin and Bitcoin exchange-traded funds (ETFs), a move aimed at institutional fund managers searching for secure, regulated access to digital assets. According to Stephen Philipson, vice chair at US Bank, the renewed offering underscores the bank’s commitment to supporting institutional investors in a shifting financial landscape.

The bank’s previous attempt at crypto custody stalled in 2022, when accounting rules from the Securities and Exchange Commission (SEC) forced banks to report digital assets on their balance sheets, making custody operations financially prohibitive. But recent regulatory easing—including the Federal Reserve’s decision in August to end its crypto supervision program—has given traditional banks a clearer path back into digital assets.

To bolster its infrastructure, US Bank has partnered with New York Digital Investment Group (NYDIG), a Bitcoin-focused financial services firm. Tejas Shah, NYDIG’s CEO, said the collaboration reflects a shared mission to bring institutional-grade safety and security to Bitcoin custody.

By rejoining peers like BNY Mellon and State Street in the custody race, US Bank positions itself to capture a growing slice of demand from institutional managers as Bitcoin ETFs attract record levels of inflows in 2025.