Minnesota has enacted a new framework that allows state-chartered banks and credit unions to offer virtual-currency custody services beginning August 1, 2026.

What the law does

Under Chapter 93 (H.F. 3709), banks and credit unions may safeguard customers' virtual currency or the private keys used to access it. The law says those services can be offered in a nonfiduciary or custodial capacity, including as an agent, bailee, or trustee for safekeeping and administration.

The authorization is not open-ended. Institutions must give the Minnesota commerce commissioner 60 days' written notice before starting, and they must maintain written policies covering risk management, internal controls, cybersecurity, business continuity, and compliance.

What the law does not do

The more important detail is what Minnesota did not authorize. Chapter 93 says the new sections do not let banks or credit unions engage in activities that are otherwise prohibited by law, and they do not change the legal status of virtual currency under state or federal law.

The statute also requires customer assets and control mechanisms to be legally and operationally segregated from the institution's own property. That makes this a narrow custody measure rather than a broad green light for balance-sheet crypto risk.

For crypto markets, the signal is modest but real: another U.S. state is giving regulated local institutions a path to hold digital assets for customers instead of leaving custody entirely to crypto-native firms.