The US regulators approve bitcoin custody services for banks

On July 22, 2020, the Office of the Comptroller of the Currency (OCC), a key regulator of national banks in the United States, issued a landmark decision that allowed federally chartered banks and savings associations to provide bitcoin custody services for their customers.
 

This decision by the OCC represented a major step forward in the integration of bitcoin into the traditional banking system. It acknowledged the growing demand for secure and reliable custody services for digital assets, which, until then, had largely been the domain of specialized firms. With this green light, national banks could now hold onto the unique cryptographic keys for a bitcoin wallet, effectively allowing them to store digital assets like Bitcoin on behalf of their clients.
 

The interpretive letter from the OCC clarified that banks could offer both fiduciary and non-fiduciary custodian services, aligning with the financial market’s increasing technological advancements. The letter emphasized that consumers and investment advisors might prefer to use regulated custodians to ensure they do not lose their private keys and access to their funds.
 

This move was seen as a response to the evolving needs of the market, where there was a clear trend towards the adoption of new technology to provide traditional services. The OCC recognized that as financial markets become more technologically driven, there would likely be an increasing need for banks and other service providers to leverage new technology and innovative ways to serve their customers.