As time passes, more and more traditional financial institutions are succumbing to the increasing popularity of the cryptocurrency market. U.S. Bank of Minneapolis, Minnesota, is the latest addition to this list. The vice president of the bank, Gunjan Kedia, has recently told CNBC that the bank has completed all preparations for offering crypto custody services to their clients.
Kedia also told the media that the decision had been made keeping in view the increasing demand from the clients of the bank. He added that many fund managers are looking for options to diversify their portfolios with the addition of digital assets. As of this year, the bank already owns $8.6 million worth of assets under management.
Many Banks Acknowledge the Potential of Cryptocurrencies
2021 is the year of cryptocurrencies. This year had seen a monumental rise in the overall evaluation and growth of the cryptocurrency market when it reached $2 trillion. BNY Mellon decided to offer their clients Bitcoin custodial services as soon as February. BNY CEO of Asset and Digital services, Roman Regelman, told the media that Bitcoin is going to take over the world like the internet.
Other legacy financial institutions like JP Morgan, Morgan Stanley, Goldman Sachs, State Street, and many more will soon jump on the cryptocurrency bandwagon. The executive brass of these financial giants has claimed that the banks have been compelled to make these changes in their services due to the increasing interest in Bitcoin and other crypto variants. Meanwhile, the banks in the United Kingdom have been banning the use and adoption of cryptocurrencies under their jurisdiction.
The US bank that has recently decided to introduce cryptocurrency custodian services is going to allow several options to their clients. The fund managers who have been hoping to acquire digital assets under their private capacity will be provided with a personalized private key for their reserves. The account holders of the bank will be able to use the new service extension for Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and many selected digital assets.
The US Bank is partnering with NYDIG that is a subsidiary of Stone Ridge Asset Management. Yan Zhao, President of NYDIG, recently told the media that thus far, hundreds of banks in the United States have partnered with their organization to make the crypto custodial services possible. He also claimed that if the banks are unable to comply with the rising demand for cryptocurrency, they are at risk of losing business and clients to the services like RobinHood, Square Inc., PayPal, and Coinbase.