European banks are currently leading the global race in providing bitcoin custody services, in sharp contrast to the regulatory challenges faced by U.S. banks.

As the world of cryptocurrency continues to evolve, these institutions are making significant strides in embracing digital assets, despite the U.S. Securities and Exchange Commission’s guidelines that treat customers’ crypto assets as liabilities.

The SEC’s guidance on treating customers’ crypto assets as liabilities has proven to be a significant hurdle for U.S. banks. Meanwhile, European banks have been proactive, with several major institutions announcing plans to offer digital asset custody services.