U.S. Bancorp Awakens: Bitcoin Custody Roars Back from the Grave

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Once upon a time, in the land of Wall Street and whispered secrets, U.S. Bancorp decided it was high time to dust off its dusty Bitcoin custody services-but only after a three-year nap that would make Sleeping Beauty jealous. Why the sudden resurgence? Apparently, now everyone’s jumping into the Bitcoin pool faster than you can say “regulatory risk,” even if the water’s still questionable enough to give your grandmother a mild headache. 💼💸

Banking meets Bitcoin in a confusing handshake

The Return of the Crypto Crusade

  • U.S. Bancorp’s rediscovery of Bitcoin custody is a story of rebirth, aiming at institutional clients and spot Bitcoin ETFs-because apparently, old dogs learn new tricks.
  • NYDIG will be playing the part of the trustworthy sub-custodian while U.S. Bancorp moonlights as the friendly face customers see-think of it as a bank in a Bitcoin costume party.
  • Spot Bitcoin ETFs have pulled in over $54.57 billion-enough to buy yourself a small island, or perhaps just a really expensive sandwich-and now hold about 6.45% of all Bitcoin in circulation, which, given the current volatility, is roughly a thousand rollercoasters in a small bag.

According to some clever words from Reuters on September 3, the Minnesota-based financial giant is machining up to relaunch its Bitcoin custody service, targeting big institutional whales and, for the very first time, welcoming the new shiny thing called spot Bitcoin exchange-traded funds (ETFs). Because what’s better than a bunch of regulators saying “No, you can’t” and then a year later saying “Well, actually, now you can?” 🎢💰

The new hybrid plan involves U.S. Bank playing the “face-of-the-thing” for clients, while NYDIG handles the actual digital treasure chests-think of a bank with a really good security system and a crypto nerd on the side. This resurrection was possible only after the SEC decided that the Staff Accounting Bulletin 121 was better left in the dustbin of regulation history, freeing banks to pretend they understand crypto without having to hold a PhD in accounting.

The Great Bitcoin ETF Gold Rush

“If a bank can’t promise stability, who can?” Well, maybe the weather, but that’s a different story.

Managed funds and other big wallets now prefer to hand over their digital gold to trusty big institutions rather than a bunch of crypto cowboys-because nothing says “trust” like a bank that looks like it could eat your mattress and still have room for your Bitcoin.

And U.S. Bancorp is not alone in this quest. Citigroup’s also poking around the crypto future, planting flags and staking claims in what’s shaping up to be a grand digital empire-less “wild west” and more “organized chaos” with a suit and tie.

Spot Bitcoin ETFs: The Numbers Speak Louder Than Tweets

Since January 2024, when regulators finally decided to let ETFs run free, these financial products have set records and probably a few generations of accountants into a mild panic. Over $54.57 billion has flowed in, making these ETFs the digital equivalent of a tidal wave-except instead of water, it’s money, and instead of a tsunami, it’s a lot of very excited investors.

They now hold a staggering 6.45% of Bitcoin’s entire supply, which in the world of “digital bits and bytes” is like trying to herd cats-if each cat was worth a few billion dollars and had a portfolio that would make a dragon blush.

BlackRock and Fidelity apparently ran faster than the speed of light last year to hit the $10 billion milestone-because why not, when you can make billions appear like magic? Meanwhile, Coinbase, that old reliable, still boasts about holding over 80% of ETF mandates, probably because they think they’re the digital custodians of the universe. But not for long, perhaps, if U.S. Bancorp and friends keep busy.

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2025-09-03 18:36