Institutional investors are increasingly looking for regulated access to digital assets as banks modify their services to satisfy this demand. On September 3, U.S. Bank announced that it has restarted its cryptocurrency custody services, which were first launched in 2021, through an early access program for clients of Global Fund Services. The bank elaborated:
These services are designed for institutional investment managers with registered or private funds who are in search of a secure solution for the safekeeping of bitcoin.
The revamped platform also offers support for bitcoin exchange-traded funds (ETFs), with NYDIG, a firm specializing in bitcoin financial services and infrastructure, chosen as the sub-custodian.
Executives framed the relaunch as a continuation of previous efforts and a reaction to changing regulations. Stephen Philipson, vice chair of U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, remarked: “We take pride in being one of the first banks to provide cryptocurrency custody for fund and institutional custody clients back in 2021, and we are thrilled to bring this service back this year. With increased regulatory clarity, we have broadened our offerings to include bitcoin ETFs, enabling us to deliver comprehensive solutions for managers in need of custody and administration services.
NYDIG’s CEO Tejas Shah expressed, "We are privileged to collaborate with U.S. Bank as its main provider for bitcoin custody services. This partnership allows us to connect traditional finance with the contemporary economy, enabling Global Fund Services clients to access bitcoin as a reliable form of currency, all while ensuring the safety and security that regulated financial institutions demand."
Additionally, broader strategic goals were emphasized. Dominic Venturo, senior executive vice president and chief digital officer at U.S. Bank, stated, "U.S. Bank has been leading the way in investigating how digital assets can benefit our clients. By further enhancing our capabilities, we open up new avenues to provide innovative solutions to those we serve. U.S. Bank is committed to advancing progress and shaping the future of what is important for our clients in the realm of digital finance." With $11.7 trillion in assets under custody and administration as of June 30, 2025, the bank’s re-entry into bitcoin custody indicates a growing institutional willingness to engage with cryptocurrencies. Although critics point out the risks associated with market volatility and custodial complexities, supporters argue that regulated partnerships enhance security and expand access for institutional investors looking to invest in this asset class.
Technology stocks have reclaimed their leading position. The Nasdaq Composite experienced significant gains during Wednesday's trading session, driven by rising shares of Alphabet and Apple.
Alphabet's stock surged by 9.1% after Google successfully evaded severe antitrust penalties. A U.S. judge permitted the company to retain both its Chrome browser and its collaboration with Apple. Meanwhile, Bitcoin and gold also saw increases.
Even with the gains on Wednesday, investors are preparing for potential volatility in September, a month that has historically been unfavorable for stock market performance. Both stocks and bonds faced declines on Tuesday as investors expressed concerns over inflation and the independence of the Federal Reserve.
"Given September's poor historical performance, the defensive sectors have proven to be the most resilient," remarked Sam Stovall, chief investment strategist at CFRA Research.
Commenting on the market fluctuations this week, he noted, "We’ve observed at least one instance of a one-day turnaround in that rotation."
Shares of U.S. oil producers negatively impacted the S&P 500, plummeting sharply on Wednesday amid speculation that the Organization of the Petroleum Exporting Countries and its allies might opt to increase output, potentially worsening a global fuel surplus when the cartel convenes this weekend.
The 30-year Treasury yield retreated after briefly exceeding 5% early Wednesday, while the 10-year Treasury also saw a rally. These changes followed a government report indicating an increase in private layoffs compared to the previous year, along with a speech from a Federal Reserve official that highlighted "downside risks to the labor market."
In Europe, yields on longer-term debt stabilized after reaching their highest levels in over a decade on Tuesday. Japan, however, lagged behind, with bond prices remaining under pressure, resulting in higher yields.
Treasury Secretary Scott Bessent is set to begin interviewing candidates for the next chair of the Federal Reserve starting this Friday, as reported by sources familiar with the situation.
Macy's stock experienced a significant increase of 21% following the department store's upward revision of its annual forecast. Nevertheless, the company anticipates that consumers will be more selective due to tariffs and various economic challenges in the latter half of the year.
In the previous quarter, earnings per share for S&P 500 companies increased by approximately 13% compared to the same period last year, based on LSEG data that includes projections for companies that have yet to report.
During trading on Wednesday:
The stock market showed mixed results. The Dow industrials remained relatively stable, while the S&P 500 gained 0.5%. The Nasdaq Composite outperformed, climbing by 1%.
The yield on the 10-year Treasury note decreased to 4.211%, and the 30-year bond yield stood at 4.892%.
The WSJ Dollar Index experienced a slight decline.
Gold prices continued to rise. Gold futures for September delivery increased by 1.2%, closing at a record high of $3,593.20 per troy ounce.
Japanese and most Asian stock markets saw declines, whereas European markets experienced gains.
Oil prices fell following a media report indicating that OPEC+ might consider increasing output again after their meeting on Sunday.
Ripple's announcement—made in July via social media by CEO Brad Garlinghouse—reflects similar actions taken by Circle and BitGo. Analysts believe that the joint effort to obtain a national charter is focused on enhancing credibility and integrating more deeply into Main Street.
However, are these initiatives merely superficial enhancements? While national trust banks hold federal charters, they are not permitted to accept deposits or issue loans like traditional banks. Instead, their role is to safeguard assets, manage client funds, and provide relevant financial products, indicating that this strategy is primarily about vertical integration and minimizing dependence on third parties. Still, these changes act as a significant alert for the conventional banking industry. With a charter, digital asset companies could enjoy quicker settlement times and reduced costs, bypassing intermediary banks.
For some, the advance of blockchain-based digital companies should be viewed as a complementary force. "Entities driven by blockchain are no longer mere disruptors on the outskirts; they are now recognized custodians of value that can coexist with and enhance traditional banking systems," states Tim Chen, global strategy head at Mantle, a blockchain financial technology company. Nevertheless, Chen cautions that traditional banks must recognize that tokenization is swiftly altering the landscape.
"What used to necessitate intermediaries and protracted settlement processes can now be accomplished through a smart contract and a stable, regulated digital token," he adds.
The charter applications must receive approval from the Office of the Comptroller of the Currency, which is the highest banking regulator in the US. Ripple is also pursuing a Fed Master account that would grant access to the Federal Reserve’s payment system. If this request is approved, Ripple would be able to maintain reserves of RLUSD, its own stablecoin, with the central bank. Circle has submitted a similar request. Earlier this July, Bluechip, the agency that rates stablecoins, awarded RLUSD its highest rating.
President Trump’s supportive stance on cryptocurrency has encouraged the bold initiatives taken by crypto companies. In July, the administration enacted the GENIUS Act, which governs stablecoins. Additionally, two more crypto-related laws, the Clarity Act and the Anti-CBDC Surveillance State Act, are still awaiting approval.
