Minnesota Gov. Tim Walz signed HF 3709 into law on Monday, making the state one of the first to explicitly authorize its state-chartered banks and credit unions to hold bitcoin and other virtual currencies on behalf of customers. The legislation, now Chapter 93 of the 2026 Session Laws, takes effect Aug. 1.
What the law does
The bill allows any bank or credit union chartered under Minnesota law to offer custody services for digital assets. That means they can store private keys, manage wallets, and handle transfers for clients — the kind of service that's largely been the domain of specialist crypto firms and a handful of federally chartered banks. The law doesn't require them to offer it, but it clears away legal uncertainty that might have held some back.
Why the timing matters
Crypto custody has been a patchwork in the U.S. Some states, like Wyoming and New York, have their own frameworks. Minnesota's move gives local institutions a clear green light just as more traditional finance players are eyeing digital asset services. The law covers all virtual currencies, not just bitcoin, so banks could also custody ether or stablecoins — as long as they stay within state regulation.
Banks and credit unions that want to offer custody now have until Aug. 1 to build out their compliance and tech stacks. The Minnesota Department of Commerce will oversee implementation. No state agency has signaled any additional rulemaking yet, but the law itself is straightforward: if you're a state-chartered depository institution, you can hold crypto for your customers.
