Virtual-currency custody services allowed to be offered and performed.

HF 3709 allows Minnesota banks and credit unions to offer virtual-currency custody services, meaning they can safely hold customers' cryptocurrency or the keys to access it. The bill requires these institutions to follow strict safety rules - including cybersecurity measures, risk management policies, and asset segregation - to protect customer holdings separately from the institution's own assets. Financial institutions must also notify regulators 60 days before starting these services and comply with existing state and federal laws. This change directly affects banks, credit unions, and cryptocurrency users in Minnesota, enabling regulated custody options without altering how virtual currency is legally treated.