The financial world is witnessing a significant shift as US Bancorp, one of America’s five largest banks, renews its interest in the cryptocurrency sector. This move is part of a broader trend among banks that are finding cryptocurrencies increasingly lucrative. The decision comes as a notable pivot from its earlier hesitant stance during the Biden administration, with the bank now aggressively pursuing opportunities under Trump’s leadership.
What Drives US Bancorp’s Renewed Interest?
US Bancorp has reinstated its institutional cryptocurrency custody services, a decision spotlighted by Bloomberg, marking a return to its crypto initiatives. Cryptocurrency holdings for institutional clients are once again under its purview. This rekindled activity coincides with the recent regulatory shift under Trump’s administration, which has removed the requirement for banks to hold extra capital against their cryptocurrency operations.
How Are Other Banks Reacting?
This trend is not isolated to US Bancorp. Under Paul Atkins’s leadership at the SEC, other financial giants have slowly been entering the crypto custody market. BNY Mellon became the first large bank to receive an exemption to offer such services in 2022. This wave of compliance reform also paved the way for Deutsche Bank and Citigroup to announce their own crypto custody services.
“This was always part of our playbook, and what we are doing now is akin to reopening and reapplying it.” — Stephen Philipson, head of US Bancorp’s corporate services division.
Meanwhile, Coinbase, one of the largest cryptocurrency custody firms in the United States, has expanded its services in the face of regulatory challenges, serving even the US Department of Justice with its Coinbase Prime platform. This reflects a growing institutional appetite for crypto services despite previous setbacks.
As more banks globally adopt crypto services, we are beginning to see a pattern forming in the financial industry.
- US Bancorp revives its crypto custody services, signaling a broader shift in banking strategies.
- The SEC removes capital requirements for crypto, easing banks’ operational burdens.
- Global banks, including Deutsche Bank and Citigroup, plan to launch crypto services by 2026.
The financial landscape is shifting as major institutions follow suit, suggesting a new phase of mainstream integration of cryptocurrencies. With these developments, banks are embracing the cryptocurrency sector, driven by potential profits and a changing regulatory climate.
