Banks have offered this kind of custody for decades. Extending it to crypto is newer, and a growing number of banks are now building out the infrastructure to do it as client demand grows.
Many banks extend the same custody systems they already use for stocks and bonds to bank-held crypto wallets.
The bank reports and manages crypto holdings the same way it does other custody accounts, under the same banking and securities regulators.
Bank custody gives investors a familiar structure for holding crypto, with the bank holding the keys instead of the individual. Self-custody works the other way: the person holds their own keys directly, with no third party involved. Which approach an investor uses, one, the other, or both, comes down to personal preference, and reflects how crypto is settling into the broader mix of investment options.
