U.S. Bank, the fifth-largest retail bank in the United States, announced Tuesday that it is launching a cryptocurrency custody service for institutional investors, potentially setting the stage for wider mainstream acceptance of digital assets.
As CNBC reported, U.S. Bank haswith New York Digital Investment Group, or NYDIG, to provide custody services for Bitcoin ( ), Bitcoin Cash ( ) and Litecoin ( ). Gunjan Kedia, a senior executive at U.S. Bank’s wealth management and investment division, told CNBC that support for other cryptocurrencies like Ether ( ) will be rolled out over time.
Fund managers and other institutional investors have beenfor most of the year. Their participation has grown significantly since the May 2020 Bitcoin halving event, which triggered renewed bullish sentiment for the leading digital asset and, by extension, the broader cryptocurrency market.
Grayscale Bitcoin Trust, which trades under the ticker symbol GBTC, has become a popular vehicle for institutional investors. As Cointelegraph reported, U.S. investment banksince April. The bank also added in April 2021.
U.S. Bank isn’t the first major financial institution to offer crypto custody services; major players such as, Bank of New York Mellon and Northern Trust have also announced plans to custody cryptocurrencies.
Institutions are likely to express greater interest in cryptocurrencies as the asset class continues to grow and mature. On Tuesday, the cryptocurrency market reached a total capitalization of nearly $2.3 trillion, with.