U.S. Bancorp is exploring stablecoins as interest in its crypto custody services returns following a turbulent period under the Biden administration. CEO Gunjan Kedia reported at the Morgan Stanley US Financials Conference that regulatory uncertainties had previously hindered institutional investor interest. However, with the current environment under a more crypto-friendly administration, there has been renewed interest in the bank's services. Kedia indicated that the bank is assessing its potential role in the evolving stablecoin landscape. U.S. Bancorp could leverage partnerships to provide infrastructure for stablecoins, including managing backing assets and offering services such as escrow. While stablecoin market capitalization recently peaked at over $223 billion—dominated by USDC and USDT—Kedia noted that most transaction volumes are still crypto-to-crypto trades. Future developments regarding stablecoins may be influenced by regulatory shifts such as the GENIUS Act, which aims to clarify the rules for issuers. U.S. Bancorp plans to navigate these changes carefully as it solidifies its role in the stablecoin market.

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