Minnesota signs law allowing banks, credit unions to offer crypto custody services — 2026-05-19

## Short Segments Today, the SEC is poised to shake up the stock market with a new innovation exemption for tokenized stocks, potentially as soon as this week. Wall Street analysts are increasingly valuing crypto firms as infrastructure and AI platforms, signaling a shift in market perception. Zerohash Europe secures a Dutch EMI license, paving the way for stablecoin payments across the EU. And Japan's ruling party advances a proposal to build a national AI-blockchain financial system. Later, we'll dive into Minnesota's new law allowing banks and credit unions to offer crypto custody services. The SEC is set to introduce an innovation exemption for tokenized stocks, potentially reshaping the American stock market landscape. This move, expected as early as this week, would allow tokenized stock trading on blockchain platforms, enabling decentralized venues to trade shares of public companies like Nvidia, Apple, and Tesla alongside traditional exchanges. SEC Commissioner Hester Peirce is spearheading the plan, which could open new avenues for trading digital versions of securities. This development could significantly impact how stocks are traded, offering more flexibility and potentially increasing market participation. For issuers and custodians, this means preparing for a new regulatory environment that accommodates tokenized assets, while developers and exchanges may see new opportunities for innovation and growth. Wall Street analysts are increasingly viewing crypto firms as key infrastructure and AI platforms, reflecting a shift in how these companies are valued. Analysts at Benchmark, TD Cowen, and Mizuho have issued buy ratings on firms like Bitdeer, Strive, DeFi Technologies, and Gemini, highlighting their roles in infrastructure and capital markets. This shift indicates a growing recognition of the strategic importance of crypto firms in the broader financial ecosystem. For investors and market participants, this could mean a reevaluation of crypto equities, with potential for increased investment and integration into traditional financial systems. As blockchain technology continues to evolve, its role as core infrastructure becomes more pronounced, driving further institutional adoption. Zerohash Europe has obtained a Dutch EMI license, enabling it to offer stablecoin payment services across the European Economic Area. This license, granted by De Nederlandsche Bank, allows Zerohash to provide regulated crypto and stablecoin infrastructure services under the EU’s Markets in Crypto-Assets Regulation framework. For payment companies and enterprises, this development opens up new possibilities for integrating stablecoin payments into their operations, enhancing cross-border transactions and financial inclusivity. As stablecoins gain traction as a reliable digital currency, this move could accelerate their adoption in the European market, providing a stable and regulated environment for digital transactions. Japan's ruling party has approved a proposal to develop a national AI-blockchain financial system, aiming to integrate these technologies into the country's financial infrastructure. The proposal, led by the Liberal Democratic Party, seeks to create a next-generation financial system that leverages blockchain and AI for enhanced efficiency and security. This initiative could position Japan as a leader in digital finance, fostering innovation and competitiveness in the global market. For financial institutions and tech companies, this presents an opportunity to collaborate on cutting-edge solutions that could redefine financial services in Japan and beyond. As the proposal moves forward, stakeholders will need to navigate regulatory challenges and technological integration to realize its full potential. ## Feature Story Minnesota has taken a significant step in the crypto space by signing a law that allows banks and credit unions to offer crypto custody services. Governor Tim Walz's approval of HF 3709 marks Minnesota as one of the early adopters in the U.S. to permit such services, effective August 1. This law provides a unified framework for state-chartered banks and credit unions, enabling them to hold digital assets like Bitcoin for their customers. State Representative Steve Elkins and others see this as a milestone in integrating cryptocurrency into traditional financial systems. The legislation mandates that financial institutions must segregate client digital assets from their own holdings, ensuring security and compliance with state and federal laws. Additionally, institutions are required to notify Minnesota’s Commerce Commissioner 60 days before launching crypto services, adding a layer of oversight. This development is crucial for issuers and custodians, as it opens up new avenues for offering secure and regulated crypto services to customers. For end users, this means greater trust and accessibility in managing their digital assets through familiar financial institutions. As cryptocurrency becomes more mainstream, the demand for trusted custodial services is likely to grow, prompting other states to consider similar legislative measures. Looking ahead, the success of Minnesota's approach could influence national policy, potentially leading to broader adoption of crypto custody services across the U.S. For now, stakeholders will be watching closely to see how this law impacts the financial landscape and whether it encourages further integration of digital assets into traditional banking systems.