Minnesota Governor Tim Walz signed HF 3709 on May 14, 2026, at 10:00 a.m., authorizing certain virtual-currency custody services by Minnesota banking institutions and credit unions. The bill was filed with the secretary of state on May 15, 2026, became Chapter 93 of the 2026 Session Laws, and takes effect on August 1, 2026. The official references are Minnesota’s HF 3709 bill page, the Chapter 93 session-law page, and the 2026 session-law index.
HF 3709 sets custody rules for banks and credit unions
The measure advanced through the legislature with bipartisan support. The House passed the original bill on April 30, 2026, by 130-4. The Senate passed an amended version on May 6, 2026, by 51-16. The House concurred with the Senate amendments and repassed the bill on May 11, 2026, by 119-6.
Chapter 93 defines virtual-currency custody services as the safekeeping, control or management of virtual currency, or the private keys used to access it, on behalf of another person. The law authorizes banking institutions and credit unions to provide those services in a nonfiduciary capacity, subject to applicable state and federal law. It does not specifically name Bitcoin, although Bitcoin may fall within the broader virtual-currency definition.
The statute directly requires participating institutions to operate in a safe and sound manner and maintain written policies and procedures for risk management, internal controls, cybersecurity, business continuity and compliance. It also requires at least 60 days’ written notice to the Minnesota Commissioner of Commerce before services begin, with the notice describing the services and the institution’s risk-management framework.
Chapter 93 also requires customer virtual currency and related control mechanisms to be legally and operationally segregated from the bank’s or credit union’s own assets and not treated as institutional property. Institutions may use qualified third-party service providers or subcustodians, but they retain oversight responsibility and must ensure compliance with the law. Descriptions of technical custody buildout, vendor due diligence, platform integration and compliance implementation are operational consequences, not separate statutory text.
Scope and market context require cautious framing
Minnesota’s framework could apply across a broad state financial sector, but the institution count needs attribution. Minnesota’s Finance & Insurance Ecosystem page, citing FDIC data accessed in May 2025, lists 240 commercial insured banks in the state with about $128 billion in assets. Minnesota Credit Union Network testimony described the network as representing 82 not-for-profit, member-owned credit unions.
Minnesota is the first Midwestern state to enact a unified legislative framework covering both state-chartered banks and credit unions, while also noting that other U.S. states had already created digital-asset custody pathways. Minnesota is therefore positioned as an early state-level custody framework and, under that characterization, a first-in-the-Midwest model for both banks and credit unions.
The current status is narrow and verifiable: HF 3709 was signed on May 14, 2026, filed as Chapter 93 on May 15, and becomes effective August 1, 2026. The law creates a regulated pathway for Minnesota banking institutions and credit unions to offer virtual-currency custody services, provided they satisfy direct statutory requirements on notice, segregation, supervision, risk management, cybersecurity, business continuity and compliance. Technical custody architecture, vendor selection, platform integration and internal implementation planning remain derived operational effects, not separate legal mandates.