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With the growing prominence of cryptocurrencies, especially Bitcoin, the demand for digital assets is also increasing. Considering the rise in demand, the U.S. Bank has planned to launch crypto custody services for institutional investors.
The banks in the United States of America were only allowed to offer crypto-related services a year ago. Now, as more institutions are attracted towards digital assets, the U.S. Bank has decided to offer crypto custody services to fund managers.
Bitcoin is the flagship cryptocurrency and one of the digital assets that will be supported by the U.S. Bank. If you are interested in buying BTC, make sure you choose one of the top crypto exchanges in the USA.
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Demands of Institutional Clients and Supported Digital Assets
The U.S. Bank is the fifth-largest retail bank in the United States of America. The U.S. Bank has reportedly formed a partnership with New York Digital Investment Group (NYDIG).
The partnership between both the entities has been formed to offer crypto services for:
- Bitcoin
- Bitcoin Cash
- Litecoin
According to reports, Ethereum will soon be supported by the bank as well. The initiative by the U.S. Bank has been announced a year after the banks in the country received permission from the Office of the Comptroller of the Currency (OCC) to offer crypto services.
There has been a significant increase in clients’ interest in digital currencies, which has led the U.S. Bank to offer crypto services. This was established, thanks to a survey done by senior executive Gunjan Kedia at U.S. Bank.
Kedia analyzed some of the biggest clients of the firm and discovered that their interest in crypto assets has surged substantially. Other clients of the bank also wanted the firm to introduce crypto services as several other financial institutions have already done so.
Kedia stated:
“Our clients are getting very serious about the potential of cryptocurrency as a diversified asset class. I don’t believe there’s a single asset manager that isn’t thinking about it right now.”
According to reports, institutional investors with private funds in the Cayman Islands and the United States will be offered crypto custody by the U.S. Bank. The SEC still has to approve a Bitcoin ETF and the demand for digital assets is so high that some of the clients already want to sign custody contracts if the ETF is approved.
Can an Increase in Demand Also Affect BTC’s Price?
There is a lot of unpredictability that is associated with the crypto market. Numerous factors can affect the prices of digital assets, especially cryptocurrencies such as Bitcoin.
The changes in the traditional financial system of the world, brought about by the crypto space cannot be denied. Bitcoin is the most prominent cryptocurrency and its importance is being recognized more and more with time.
As mentioned above, the demand for crypto assets, especially BTC has also significantly increased. Bitcoin has crossed the $50k price mark and is currently trading at $51,557 (at the time of writing).
However, will the increase in demand also result in a further price surge? This will be seen with time.
Meanwhile, if you want to buy Bitcoin then make sure you choose some of the most popular crypto exchanges.
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