Minnesota has enacted a new law allowing state-chartered banks to offer cryptocurrency custody services, establishing a legal framework for these institutions to manage digital assets. The legislation, known as Chapter 93 of Minnesota’s 2026 Session Laws, enables banks to store, manage, and safeguard cryptocurrencies for both retail and institutional clients. This move aims to provide a regulated environment for crypto management, addressing a key barrier for institutional investment in digital assets. The law positions Minnesota banks to compete with established crypto custodians by offering regulated custody services, which could attract customers seeking the security and oversight of traditional financial institutions. However, banks must develop the necessary technical infrastructure and compliance programs to support these services. The legislation reflects a broader trend among states to integrate digital assets into the traditional banking system, potentially increasing trust and accessibility for crypto users.