US Bank, the America’s fifth-largest retail bank, revealed on Tuesday that it is introducing a cryptocurrency custody service for Bitcoin, Bitcoin Cash and Litecoin to its institutional investors.
According to CNBC, U.S. Bank has collaborated with New York Digital Investment Group, or NYDIG, to provide Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC) custody services (LTC).
Support for other cryptocurrencies, such as Ether (ETH), will be added over time, according to Gunjan Kedia, a senior executive at US Bank’s wealth management and investment division.
For most of the year, fund managers and other institutional investors have been growing their exposure to cryptocurrencies. Since the May 2020 Bitcoin halving event, which prompted renewed optimistic sentiment for the top digital asset and, by extension, the larger cryptocurrency market, their participation has increased dramatically.
Grayscale Bitcoin Trust (GBTC) has become a popular instrument for institutional investors. Morgan Stanley, according to Cointelegraph, has more than doubled its GBTC holdings since April. In April 2021, the bank introduced BTC exposure to 12 investment funds.
U.S. Bank isn’t the first large financial institution to reveal plans to custody cryptocurrency; State Street, Bank of New York Mellon, and Northern Trust have all stated plans to do so.
As the asset class grows and matures, institutions are likely to become more interested in cryptocurrencies. The cryptocurrency industry surpassed about $2.3 trillion in market capitalization on Tuesday, with Bitcoin trying to reclaim $50,000.