Minnesota Banks Get Green Light for Crypto Custody Services

Minnesota Governor Tim Walz signed House File (HF) 3709 into law on May 16, giving state-chartered banks and credit unions the authority to offer crypto custody services from August 2026.

The law permits institutions to hire third-party subcustodians to carry out the work. Client funds must remain legally and operationally separated from the bank's or credit union's own assets at all times, and may not be treated as the institution's property.

State Representative Bernie Perryman said in March 2026 that the legislation was designed to let Minnesota-based institutions keep pace with their clients. He stated Minnesotans should not have to turn to unregulated or offshore providers for custody services.