ST. PAUL, Minn.—Banks and credit unions in Minnesota will be permitted to offer certain cryptocurrency custody services beginning Aug. 1 under legislation signed into law Friday by Gov. Tim Walz, a move supporters said will allow state-chartered financial institutions to compete with emerging digital-asset providers, according to TradingView.
The new law, House File 3709, authorizes Minnesota financial institutions to provide virtual-currency custody services in a nonfiduciary capacity and to work with third-party service providers or subcustodians, provided customer assets are legally and operationally segregated from the institution’s own assets, TradingView reported.
State Rep. Bernie Perryman, one of the bill’s original sponsors, said earlier this year the measure was intended to ensure Minnesota-based banks and credit unions “are allowed to evolve alongside their customers and members” rather than forcing consumers to rely on unregulated or offshore crypto providers, according to TradingView.
The legislation could affect a broad swath of the state’s financial sector. Minnesota reported 240 commercial insured banks with roughly $128 billion in assets as of May 2025, along with 82 credit unions affiliated with the Minnesota Credit Union Network. Minneapolis-based U.S. Bancorp, one of the nation’s largest banks, is also headquartered in the state.
TradingView further reported that Minnesota lawmakers are also advancing separate legislation that would ban cryptocurrency kiosks and ATMs statewide amid concerns over scams targeting residents. The developments come as crypto firms increasingly seek regulatory approval for banking and custody services, including recent efforts by Kraken parent Payward to secure a national trust charter through the Office of the Comptroller of the Currency.