U.S. Bancorp’s institutional crypto custody business is experiencing renewed interest under the crypto-friendly Trump administration, and the bank is actively “studying and watching” potential involvement with stablecoins, according to CEO Gunjan Kedia.
Speaking at the Morgan Stanley U.S. Financials Conference on Wednesday, Kedia noted that the bank’s crypto custody platform — launched in 2021 — had struggled under the previous regulatory climate.
“The product didn’t really take off because the regulatory regime at that point was very uncertain for large institutional investors,” Kedia explained. “That product is back, and we are very able to provide it now.”
During the Biden administration, the Securities and Exchange Commission pursued several legal actions targeting crypto offerings, dampening institutional interest in the space.
In contrast, President Donald Trump—whose family has crypto business ties—has reversed much of the SEC’s prior enforcement activity and pledged to halt future regulatory crackdowns on the crypto industry.
U.S. Bancorp explores potential involvement in stablecoin sector
Kedia noted that the “larger conversation at the moment” centers on stablecoin-based payments, a space U.S. Bancorp is “actively studying and monitoring.”
She added that the bank — which operates as U.S. Bank and ranks as the fifth-largest in the country — is exploring the possibility of launching its own stablecoin. “It’s something we could pursue through partnerships, and we have several pilot programs already underway,” she said.
Kedia added that U.S. Bancorp could also serve as a key infrastructure provider for a stablecoin, managing the underlying reserve assets and offering related services such as escrow. However, she noted that many of these details “are yet to be figured out.”
Stablecoins are still primarily used for crypto-to-crypto transaction
Kedia explained that while stablecoin transaction volumes may appear attractive on the surface, the majority of activity remains confined to crypto-native use cases.
“Beneath the surface, about 90% of that volume is just crypto-to-crypto trading,” she said.
She noted that clearer guidance on how to structure a stablecoin offering could emerge from the GENIUS Act — a bill advanced by the U.S. Senate on Wednesday that aims to establish a regulatory framework for stablecoin issuers.
“There’s still a lot to be figured out before we can define the exact role we’ll play,” Kedia added.
