Minnesota Legalizes Crypto Custody Services for Banks, Credit Unions Starting Aug. 1

On Friday, Minnesota Governor Tim Walz signed House File (HF) 3709 into law, authorizing the state's banks and credit unions to offer virtual-currency custody services beginning Aug. 1.

The law permits financial institutions to provide crypto custody services in a nonfiduciary capacity and allows them to engage third-party service providers or subcustodians, provided the funds are legally and operationally segregated from the institution's assets.

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