- An executive for U.S. Bank has said that its clients are “getting very serious” about the potential of cryptocurrency
- U.S. Bank launched a cryptocurrency custody service yesterday for institutional funds
- Gunjan Kedia said that asset managers the country over are all looking at the cryptocurrency space
The vice chair of U.S. Bank, the fifth-biggest retail bank in the country, has said that its clients are “getting very serious about the potential of cryptocurrency as a diversified asset class”. Gunjan Kedia was speaking as U.S. Bank announced a cryptocurrency custody service for institutional users following high demand. The bank, owned by U.S. Bancorp, is allowing fund managers to store the private keys for their bitcoin wallets with them in another sign that institutions are having an impact on the traditional banking industry.
U.S. Bank Offers Institutional Crypto Security
U.S. Bank opened up its cryptocurrency custody offering to institutional investors yesterday in a collaboration with New York Digital Investment Group LLC (NYDIG). The offering will start with Bitcoin, Bitcoin Cash, and Litecoin with an eye to future cryptocurrencies being supported at a later date.
CNBC broke the news yesterday, with U.S. Bank’s vice chair of the bank’s wealth management and investment services division Kedia telling the outlet about how seriously their clients were taking the cryptocurrency movement, adding that “I don’t believe there’s a single asset manager that isn’t thinking about it right now.”
The Herd Keeps Coming
U.S. Bank can now add its name to other major players offering crypto fund security for institutions including Bank of New York Mellon, State Street and Northern Trust. With cryptocurrencies becoming a major part of many hedge fund and corporate investment portfolios, finding somewhere to store their private keys is becoming increasingly more important.
Kedia revealed that the company wanted to be on the front foot of institutional services, adding that their research discovered that “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”. U.S. Bank isn’t the first in thinking this way, and it certainly won’t be the last.
