America’s fifth-largest bank launches crypto custody service — Report

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U.S. Financial institution, the fifth-largest retail financial institution in the USA, introduced Tuesday that it’s launching a cryptocurrency custody service for institutional traders, doubtlessly setting the stage for wider mainstream acceptance of digital belongings.

As CNBC reported, U.S. Financial institution has partnered with New York Digital Funding Group, or NYDIG, to supply custody companies for Bitcoin (BTC), Bitcoin Money (BCH) and Litecoin (LTC). Gunjan Kedia, a senior govt at U.S. Financial institution’s wealth administration and funding division, advised CNBC that assist for different cryptocurrencies like Ether (ETH) might be rolled out over time.

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Fund managers and different institutional traders have been increasing their exposure to cryptocurrencies for many of the yr. Their participation has grown considerably for the reason that Could 2020 Bitcoin halving occasion, which triggered renewed bullish sentiment for the main digital asset and, by extension, the broader cryptocurrency market.

Grayscale Bitcoin Belief, which trades underneath the ticker image GBTC, has develop into a preferred car for institutional traders. As Cointelegraph reported, U.S. funding financial institution Morgan Stanley has doubled its GBTC holdings since April. The financial institution additionally added BTC exposure to 12 investment funds in April 2021.

Associated: The long game: Institutional interest in crypto is just getting started

U.S. Financial institution isn’t the primary main monetary establishment to supply crypto custody companies; main gamers akin to State Street, Financial institution of New York Mellon and Northern Belief have additionally introduced plans to custody cryptocurrencies.

Establishments are more likely to categorical higher curiosity in cryptocurrencies because the asset class continues to develop and mature. On Tuesday, the cryptocurrency market reached a complete capitalization of practically $2.3 trillion, with Bitcoin fighting to reclaim $50,000.