Federal Reserve clears US banks to custody crypto assets including Bitcoin

Traditional banks enter the crypto custody space, opening doors for regulated institutional access.

Photo: Mesut Dogan

Key Takeaways

• The Federal Reserve has permitted US banks to offer custody services for Bitcoin and other crypto assets.
• The decision reduces regulatory friction and allows banks to compete with existing crypto custodians.

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The Federal Reserve has given US banks the green light to offer custody services for Bitcoin and other crypto assets.

The shift, outlined in a joint statement from the Federal Reserve, OCC, and FDIC, allows traditional banks to hold digital assets on behalf of customers. Previously, regulatory uncertainty barred banks from entering the crypto custody space, ceding ground to specialist firms.

With this change, banks can now expand their services to include crypto safekeeping alongside traditional offerings. The move comes amid rising institutional demand for crypto exposure, particularly secure custody solutions.

Banks offering custody must comply with existing risk-management, cybersecurity, and fiduciary standards. They are also subject to laws governing AML, KYC, and oversight of third-party service providers.

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