Specifically, it's institutional investors with private funds in the U.S. or Cayman Islands using bitcoin, with additional coin support coming soon, the bank said.
“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” said Gunjan Kedia, vice chair, of U.S. Bank Wealth Management and Investment Services.
“Our fund and institutional custody clients have accelerated their plans to offer cryptocurrency and, in response, we made it a priority to accelerate our ability to offer custody services.
“The environment is complex, with an evolving regulatory landscape and nascent technology platforms.”
U.S. Bank Wealth Management and Investment Services has more than $8.6 trillion in assets under custody and administration and $282 billion in assets under management as of June 30, the bank said.
The news didn’t affect U.S. Bank’s stock, which on Tuesday closed at $61.29, up 1.26%.
Meanwhile, the debate over bitcoin continues among bulls and bears.
Bitcoin bulls say the digital asset is a hedge against inflation and a store of value. Bears note that the only thing bitcoin has proved to be so far is a vehicle for speculation.
The bulls also maintain that the currency can protect investors against declines in other markets, like stocks. But the bears note that since bitcoin was created in 2009, no sustained drop in stocks has occurred to test that theory.