Key Takeaways :
- Custodia Bank Launches Bitcoin Custody Service After Regulatory Approval
- Custodia Bank persisted and ultimately received approval from the Wyoming Division of Banking
Custodia Bank made a significant announcement this Tuesday, revealing that it has successfully obtained regulatory approval to introduce a Bitcoin custody platform. This Bitcoin custody service is now up and running, offering segregated accounts (not omnibus) to cater to the specific needs of its clients.
The Wyoming Division of Banking recently granted Custodia Bank the green light to roll out its Bitcoin custody service, marking a notable development in the digital asset industry.
On November 7, Custodia Bank, previously known as Avanti Financial Group, took to X (formerly Twitter) to announce the official launch of their dedicated platform designed to serve businesses, including fiduciaries, investment advisers, fund managers, and corporate treasurers.
Custodia Bank emphasized that its platform is a non-lending bank created by Bitcoin enthusiasts, offering segregated custody accounts on a custom-built Bitcoin custody platform.
One of its key features is the integration of Bitcoin custody and U.S. dollar services onto a single platform, aimed at streamlining user operations and reducing associated risks.
It’s worth noting that Custodia Bank’s journey to this point has been marked by regulatory challenges. In January 2023, the Federal Reserve Board rejected the bank’s application to become a member of the Federal Reserve System, citing inconsistencies with the required legal factors.
Custodia Bank’s groundbreaking platform launch comes on the heels of securing official approval from Wyoming’s banking department, a significant milestone for the U.S. crypto banking landscape.
CEO and founder Caitlin Long enthusiastically shared the news with the crypto community, receiving warm congratulations. The crypto community eagerly anticipates the approval of a spot Bitcoin ETF by the U.S. SEC.
Custodia Bank has taken legal action against the Federal Reserve and the Federal Reserve Bank of Kansas City, asserting an “unlawful delay” in their request to access the central bank’s payments system, which they deem crucial for their operations.
The Federal Reserve initially rejected Custodia’s application due to safety and soundness concerns, with the Kansas City Fed subsequently denying the bank’s request for a Fed master account.
