U.S. state Minnesota will allow banks and credit unions to provide cryptocurrency custody services from Aug. 1. Cointelegraph reported on May 18 that Minnesota Governor Tim Walz (팀 월즈) signed House bill HF 3709 containing the measure.
Under the new law, banks and credit unions based in Minnesota can provide certain cryptocurrency custody services on a non-trust basis. These financial institutions can use external service providers or sub-custodians to support custody operations.
Customer funds must be legally and operationally segregated from the assets of a bank or credit union. Those funds are also not treated as property owned by the financial institution.
The bill could affect Minnesota's financial sector broadly. Minnesota's government information portal shows that, as of May 2025, 240 commercial banks operate in the state with total assets of about $128 billion.
There are 82 credit unions affiliated with the Minnesota Credit Union Network. U.S. Bancorp, the seventh-largest U.S. bank by total assets, is also headquartered in Minneapolis.
Chi-gyu Hwang
delight@d-today.co.kr