Today, the country’s fifth-largest retail bank, US Bank, will announce that its Bitcoin custody services are available to fund managers, CNBC Report
Gunjan Kedia, vice chairman of the bank’s asset management and investment services division, said the service would secure Bitcoin private keys for fund managers through a partnership with NYDIG. CNBC.
It is likely that fund managers, US Bank and NYDIG will all participate in a versatile Bitcoin private key solution, for which most private key holders will have to sign off before spending Bitcoin and this is considered a strong security mechanism. Institutional buyers.
“Our clients are becoming very serious about the potential of cryptocurrency as a diversified asset class,” Kedia said in an interview. “I don’t believe there’s a single asset manager who’s not thinking about it right now.”
After surveying U.S. Bank’s largest clients to determine their interest in Bitcoin, he found that demand was high and that clients “wanted to move the bank quickly,” according to CNBC.
“What we’ve been hearing across the board is that while not every coin may survive – thousands of coins may not have room – there is something about the potential of this asset class and the underlying technology that would be prudent for us to stand on. And show support for it, ”Kedia said.
A live institutional custody product will be available at US Bank First Institutions. Although at first glance it may seem that the currency was born despite a trusted third party, self-preserving bitcoin is not the only option for some institutional investors. A custody bitcoin solution provides price exposure in many cases where none would otherwise exist.
The Bitcoin Custodial product is currently only available to institutional managers, including private funds in the United States or the Cayman Islands. Nevertheless, demand for more bitcoin products, such as an ETF, is growing.
“We have a lot of funds who are looking to invest in ETFs,” Kedia said. “Some people literally want to sign a custody agreement the day the SEC approves an ETF.”
Bank under management. US Bank, with assets of over tr trillion dollars, is the latest in a row of banks to engage with Bitcoin. This comes a year after institutional investors increased their demand for Bitcoin. Notably, Bank of New York Mellon has announced plans to keep Bitcoin and crypto in custody, among other traditionally conservative financial institutions.