U.S. Bancorp Revives Crypto Custody, Eyes Stablecoin Role – Coincu

Gunjan Kedia, U.S. Bancorp’s President, announced at the Morgan Stanley Financial Conference in New York on June 12 that the bank’s crypto custody services have experienced a resurgence. The revival of these services highlights the evolving cryptocurrency market, as increased institutional interest and policymaker support signal potential transformative impacts.

U.S. Bancorp Expands Crypto Custody Amid Regulatory Shift

U.S. Bancorp’s crypto custody service, initially launched in 2021, has reportedly gained renewed momentum. Gunjan Kedia notes that previous regulatory challenges limited the service’s adoption, but under favorable policies, institutional interest has surged. U.S. Bancorp is actively examining the potential of stablecoin ventures. This involves either issuing bank-backed stablecoins or providing essential infrastructure services.

U.S. Bancorp Expands Crypto Custody Amid Regulatory Shift

Current initiatives around stablecoins are particularly noteworthy. Gunjan Kedia emphasized that 90% of stablecoin transactions occur within crypto ecosystems, highlighting a substantial growth area for banks. U.S. Bancorp is assessing opportunities that expand their role in stablecoin transactions or as reserve asset custodians. Quoting Gunjan Kedia: “The bank is evaluating business opportunities in the stablecoin segment, with potential models including issuing its own stablecoin or providing custody/reserve infrastructure for others.”

Market reactions to these announcements have varied. While no immediate official responses have been attributed to crypto leaders or regulatory bodies, industry observers have noted the importance of aligning crypto services with traditional banking. U.S. Bancorp’s steps may catalyze similar moves from other major banks, creating a ripple effect across financial markets.

Did you know? In October 2021, U.S. Bancorp was among the first major U.S. banks to offer crypto custody, reflecting growing institutional adoption akin to what’s observed today.

Cryptocurrency Integration Prompts Industry-Wide Evaluation

Did you know? In October 2021, U.S. Bancorp was among the first major U.S. banks to offer crypto custody, reflecting growing institutional adoption akin to what’s observed today.

Bitcoin (BTC) holds 63.23% market dominance, priced at $107,753.58. Its market cap is $2.14 trillion with a 24-hour trading volume of $54.01 billion. Recent trends show a price decrease of 1.63% in 24 hours, but an increase of 31.57% over 90 days. Data sourced from CoinMarketCap.

According to Coincu research, the increasing integration of traditional banks into the cryptocurrency sector might lead to heightened scrutiny and regulation in stablecoin management. The bank’s efforts reflect a growing demand for secure digital asset management and convey a readiness to accommodate cryptocurrency innovations.