The fifth-largest in the United States, U.S. Bank launches Bitcoin custody services as demand rises. CNBC reported that the services would only be available to fund managers at the time. At present, the cryptocurrencies that are supported other than Bitcoin are BTC Cash and Litecoin. The bank will store the private keys of these supported coins and keep the holdings of the fund manager safe. Support for other popular coins is also expected to add soon.
U.S. Bank launches Bitcoin custody services.
Bitcoin custody services offered by U.S. Bank will be great for fund managers as it will take a big load off them. This move by the bank shows that crypto is slowly becoming the asset class we always wanted it to be. Earlier, we only saw banks managing the money of traditional investment firms. But now as the demand for digital assets have risen so much that banks had to adapt to this change to keep making profits. The crypto markets are already more than $2 trillion and are only expected to increase from here on.
Gunjan Kedia, the vice-chair of the bank said that their clients are becoming very serious about crypto and diversifying their portfolio in that sector. She also thinks there aren’t any asset managers who are not thinking of this right now. At present, the U.S. bank has over $8 trillion under AUM, which makes them one of the top players in the space.
The growth of the space
Talking about crypto, Gunjan said that all the coins might not survive in the future. But the space as a whole is expected to sustain and grow as the potential of the asset class is something we can stand up and support. We are seeing a rise in adoption with every single second, and the applications in the space are also increasing. It is good to see that crypto is slowly reaching its full potential. In time we can expect the remaining banks to start Bitcoin custody services as well.
What are your thoughts as the U.S. Bank launches Bitcoin custody services? And do you think the remaining banks will follow suit as well? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.