OCC Confirms US Banks Can Provide Cryptocurrency Custody Services

US Banks Can Finally Offer Crypto Custody Services

The US Office of the Comptroller of the Currency (OCC) has confirmed that banks may provide crypto custody and execution services for customers. National banks and federal savings associations can now buy and sell crypto assets at the customer's direction, including outsourcing these services to third parties.

Expanded Services Offered by Banks

According to the latest announcement, US banks are allowed to offer related services, including asset settlement, trade execution, recordkeeping, valuation, and tax reporting, all while adhering to applicable laws and customer agreements.

• Crypto custody is recognized as a modern form of traditional bank custody services.
• Banks may collaborate with sub-custodians to securely manage and store crypto assets.
• Strong risk management must be employed when dealing with third-party providers.

Responsibilities of the Banks

While banks can leverage third-party services, they remain accountable for overseeing all outsourced functions. If a bank operates in a fiduciary role, it is required to comply with federal fiduciary rules under parts 9 or 150, as applicable. All crypto-related activities must be conducted in a safe, sound, and lawful manner.

This announcement by the OCC offers a clear legal basis for banks to engage in digital asset services, enhancing confidence in crypto services provided by regulated financial institutions. It further allows banks to address crypto demand without the need for comprehensive in-house solutions.

By substantiating this authority, the OCC aids responsible crypto adoption within traditional banking, emphasizing customer protection and oversight.