US Bancorp Revives Bitcoin Custody Services Following SEC Regulatory Shift

Major banking institution US Bancorp just flipped the switch back on its Bitcoin custody operations—thanks to a pivotal rule change from the SEC.

The move signals growing institutional confidence as regulatory clarity slowly trickles into the crypto space. No more hiding digital assets under the mattress.

Banks are finally waking up to what crypto natives knew years ago: custody isn’t a side business—it’s the gateway to the future of finance. Even if they’re still figuring out what a hot wallet is.

With traditional finance giants stepping back into the ring, expect more players to jump in. Because nothing gets bankers excited like regulatory green lights and new revenue streams.

So, is this the start of a new wave of institutional adoption? Or just another cautious toe-dip into the crypto pool? Either way—the water’s getting warmer.

Regulatory Shift Opens the Door

In January 2025, the SEC formally rescinded SAB 121, removing a major hurdle for banks. This made institutions like US Bancorp to rejoin the sector in a better timing

Stephen Philipson, head of US Bank’s institutional division, told Bloomberg the bank is “reopening its playbook and executing it again,” signaling that the bank may expand custody to additional cryptocurrencies if they meet internal compliance standards.

Industry Positioning

The relaunch places US Bancorp in the company of other large financial institutions building digital-asset infrastructure. BNY Mellon introduced its custody platform in 2022, while Citigroup have also advanced plans in the sector. Fidelity, Coinbase, and Anchorage Digital continue to serve as competitors from the crypto-native side.

US Bancorp is also assessing how digital assets could integrate into its broader business lines, including wealth management and consumer payments. According to Google Finance, shares of US Bancorp (NYSE: USB) trade around $48.30, nearly flat on the day of the announcement but up 1.44% year-to-date.

Meanwhile, the desire from institutions for bitcoin exposure keeps going up. BlackRock’s iShares Bitcoin Trust (IBIT) now manages more than $80 billion in assets, showing volume.

The fact that US Bancorp is back in the market shows that traditional banks are becoming more open to digital assets. Banks now can compete to give custody services, a game changer for big buyers

The MOVE underscores the maturation of the digital asset market, where established banks are no longer sitting on the sidelines but actively building capacity to support ETFs, funds, and wealth managers seeking exposure to Bitcoin.

Also Read: SEC Crypto Task Force Meets Robinhood on Digital Asset Regulation