Banks are fundamentally businesses driven by the pursuit of profit, venturing into lucrative territories. Recently, cryptocurrencies have emerged as a profitable sphere, prompting several banks to pivot towards crypto despite past reservations. Under Biden’s administration, banks saw their crypto engagements stall, but now they are eagerly resuming activities under Trump’s leadership.
US Bancorp’s Cryptocurrency Involvement
Ranked among the top five banks in the United States, US Bancorp has reinitiated its foray into the cryptocurrency sector. The bank has revived its cryptocurrency custody services for institutional clients, a major development recently spotlighted by Bloomberg.
With Donald Trump assuming office, the SEC, previously stacked with crypto skeptics, had rescinded a critical rule. This rule mandated banks to hold additional capital on their balance sheets for crypto operations. Stephen Philipson, head of the bank’s corporate services division, remarked: “This was always part of our playbook, and what we are doing now is akin to reopening and reapplying it.”
As demand increases, the bank plans to expand its cryptocurrency custody services for corporate clients, integrating crypto into asset management and consumer payment sectors. Initially launched in partnership with NYDIG in 2021, this service faced setbacks due to Gensler’s stringent regulatory stance.
Institutional Cryptocurrency Custody Services
Coinbase stands as one of the largest cryptocurrency custody organizations headquartered in the US. During an era when banks faced regulatory threats, Coinbase expanded its operations significantly, including serving major entities such as the US Department of Justice with Coinbase Prime during the Gensler tenure.
Under Paul Atkins’s leadership, the SEC cleared the path for major financial institutions like US Bancorp to provide cryptocurrency custody services. In 2022, BNY Mellon initiated such services for Bitcoin 
$64,336 and Ethereum 
$1,874, becoming the first large bank to offer crypto custody due to a granted exemption.
We now observe major US-based financial institutions launching cryptocurrency services incrementally. This trend is not just confined to America; the number of banks offering such services globally continues to grow. Merely two months ago, Deutsche Bank, Germany’s largest bank, announced plans to provide cryptocurrency custody services by 2026. Additionally, Citigroup has recently declared their engagement in developing crypto custody and payment services.
