The news: U.S. Bancorp restarted its digital asset custody services for institutional clients after the Securities and Exchange Commission (SEC) rolled back a rule that required financial institutions (FIs) to hold capital for crypto-related activities, per Bloomberg. It’s initially focusing on Bitcoin for investment funds and ETF providers.
Why it matters: U.S. Bancorp is the fifth-largest commercial bank in the US, and its reentry into crypto custodying is a significant indicator of a shifting regulatory environment. This move, along with similar efforts by other major FIs signals a growing acceptance of digital assets within the traditional banking sector.
This trend could help legitimize the crypto market, bringing more institutional capital and potentially new financial products. It also highlights how regulatory changes can directly influence the pace of mainstream crypto adoption.
Our first take: This is a major development and not surprising given the recent regulatory changes. It's clear that the banks are no longer on the sidelines; they are actively seeking to participate in the digital asset economy.
For a major FI like U.S. Bancorp to dive back in shows there's a real business imperative here, driven by institutional demand. While crypto-native firms like Coinbase have dominated the custody space, the entry of these banking giants will create new competition in this market.
This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.
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