U.S. Bancorp Relaunches Bitcoin Custody as ETF Demand Surges

The fifth-largest U.S. bank, U.S. Bancorp, has announced the relaunch of its institutional Bitcoin custody service, pausing since 2021.

🔑 Why Now?

The SEC has officially rescinded SAB 122, a rule that forced banks to hold equivalent capital for crypto custody.

The OCC and Fed have rolled back curbs, giving banks a green light.

ETF flows are exploding after spot Bitcoin ETF approvals earlier this year.

Details:

Custody will initially cover Bitcoin for registered investment funds & ETF issuers.

Service runs via NYDIG, Bancorp’s long-time partner.

Plans to expand beyond BTC if assets meet compliance & risk standards.

Industry Context:

BNY Mellon, Fidelity, Coinbase, Anchorage and others already provide custody.

Deutsche Bank and several European lenders are lining up their own offerings for 2026.

Trump’s second administration has aggressively pushed pro-crypto reforms (GENIUS Act, CLARITY Act, “Project Crypto”).

📊 Outlook:
As ETF demand grows and regulation clears up, mainstream banks are accelerating their entry. U.S. Bancorp’s relaunch signals that crypto custody is no longer fringe — it’s becoming standard financial infrastructure.