Custodia Bank, founded by Caitlin Long, has introduced a Bitcoin custody platform.
The introduction of Custodia Bank's Bitcoin custody platform comes after the firm encountered a range of regulatory obstacles earlier this year.
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Custodia Bank, a cryptocurrency-friendly financial institution founded by Caitlin Long, a prominent Bitcoin advocate, has officially unveiled its Bitcoin custody platform. This platform is designed to cater to specific business sectors, including fiduciaries, investment advisers, fund managers, and corporate treasurers. The launch of this service follows Custodia Bank's recent approval from the Wyoming Division of Banking, which permitted the bank to go live with its Bitcoin custody offering.
Custodia Bank emphasizes that it is not a lending institution and takes pride in being a bank built by Bitcoin enthusiasts. It operates a custom-built Bitcoin custody platform that enables segregated custody accounts. Furthermore, Custodia Bank integrates Bitcoin custody and U.S. dollar services on a single platform, streamlining user operations and mitigating associated risks.
In its announcement, the bank expressed gratitude to those who have supported its endeavor and provided valuable user feedback. This suggests a commitment to improving and fine-tuning its services based on user input.
Custodia Bank's journey 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 inconsistency with the required factors under the law. The Fed also denied Custodia's request for a reconsideration of its membership application within the Federal Reserve System.
A detailed report in March 2023 by the Fed's board revealed that the rejection of Custodia's application was primarily due to concerns regarding banks with a high concentration of activities related to the cryptocurrency industry. Nevertheless, Custodia Bank officially began its operations in August 2023, despite limitations imposed by the Federal Reserve.
Founded in 2020, Custodia Bank aims to bridge the gap between digital assets and the U.S. dollar payments system, serving as a digital asset custodian. The institution was formerly known as Avanti Financial Group and is headquartered in Cheyenne, Wyoming.
Custodia Bank's services have been expanding despite regulatory hurdles, demonstrating a commitment to providing innovative financial solutions in the cryptocurrency and digital asset space.
