U.S. Bank has resumed its Bitcoin custody service for institutional investment managers after pausing it for several years due to regulatory concerns. Initially announced in 2021, the service was halted in 2022 following the Securities and Exchange Commission's restrictions on banks offering digital asset custody. With a recent regulatory shift allowing more flexibility, U.S. Bank will now provide custody services, including for Bitcoin exchange-traded funds (ETFs). The bank is collaborating with fintech firm New York Digital Investment Group (NYDIG) to offer this service. U.S. Bank is committed to evaluating various cryptocurrencies for custody based on risk and compliance standards, indicating a potential for expanding their offerings as market conditions evolve. This move aligns with a broader trend of regulatory clarity in the crypto sector, especially since recent policy changes have relaxed prior restrictions on banks dealing with digital assets. Stephen Philipson, vice chair of U.S. Bank Wealth, expressed enthusiasm about resuming custody solutions for institutional investors, particularly focusing on Bitcoin ETFs.

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