The Office of the Comptroller of the Currency from Washington, D.C. released a letter confirming that the banks and savings associations in U.S. are authorised to provide cryptocurrency custody service for their customers.

OCC said that “we conclude a national bank may provide these crypto-currency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency. This letter also reaffirms the OCC’s position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law”

Crypto custody services may extend beyond passively holding cryptographic keys associated with cryptocurrencies which are irreplaceable if lost leading to the lost of the assets.

OCC considers “a bank ‘holding’ digital currencies on behalf of a customer is actually taking possession of the cryptographic access keys to that unit of cryptocurrency.”

The banks need to hold capability to keep the assets and control the risks and the assets should not be illegal in the jurisdiction where they are held.

There is a growing trend of adopting cryptocurrencies as an integral part of the current financial environment and the digital assets can no longer be ignored, constituting an alternative to other financial instruments and keepers of value.

Bitcoin appears to take advantage of this news and increases 5% to around 9.600 $.