The US Office of the Comptroller of the Currency (OCC) has given the green light for banks to offer crypto custody and execution services to customers. National banks and federal savings associations can now facilitate the buying and selling of crypto assets as per customer instructions and can also opt to outsource these functions to third parties.

In a recent update, US banks are now permitted to provide additional crypto-related services such as asset settlement, trade execution, recordkeeping, valuation, and tax reporting. However, it is crucial that these activities comply with relevant regulations and customer agreements.

Furthermore, the OCC has reiterated its recognition of crypto custody as an evolved form of traditional bank custody services in line with previous guidance. Banks may collaborate with sub-custodians for the safekeeping and management of crypto assets but must implement robust risk management measures.

Third-party providers are required to uphold strict controls to safeguard customer assets, with banks assuming responsibility for overseeing all outsourced services. Banks under OCC regulation can conduct buying and selling of assets held in custody and delegate permissible crypto-asset activities like custody and execution services to third parties, while acting as fiduciaries within the bounds of federal rules.

By providing this framework, the OCC has enabled banks to offer digital asset services under regulatory supervision. The clarification resolves the uncertainty surrounding banks actively trading crypto assets held in custody based on customer instructions and sets a clear path for increasing trust in regulated financial institutions offering crypto services. This move supports responsible adoption of crypto within traditional banking by emphasizing the importance of customer protection and risk management.