Custodia Bank Launches Bitcoin Custodial Service After Wyoming Division of Banking Approval
Summary:
Custodia Bank, a Bitcoin-friendly institution, has introduced its Bitcoin custodial service designed for businesses such as fiduciaries, fund managers, and corporate treasurers. The launch followed the Wyoming Division of Banking's approval and aims to bridge the gap between digital assets and the U.S. dollar payment system. Despite previous rejections from the Federal Reserve Board over law-required factors, Custodia began operations in August 2023.
Recently, Bitcoin-friendly Custodia Bank, established by Bitcoin proponent Caitlin Long, has rolled out its Bitcoin custodial service. Custodia Bank’s Bitcoin custodial solution is specifically aimed at enterprises such as fund managers, fiduciaries, investment advisers, and corporate treasurers. This implementation follows shortly after the Wyoming Division of Banking approved Custodia Bank to initiate its Bitcoin custody operations. Describing its venture, Custodia Bank stressed that this platform is the creation of Bitcoin enthusiasts and offers separate custodial accounts via its distinct Bitcoin custody service. Custodia Bank has integrated Bitcoin custody and U.S. dollar services on a single platform, purposed to streamline user activities and mitigate potential risks. The bank also highlighted the critical role user feedback has played in the internal development and evolution of their Bitcoin custody platform. Past regulatory obstacles led Custodia Bank to its approval from the Wyoming Division of Banking. At the start of 2023, the Federal Reserve Board declined the bank's membership request due to what they labelled as nonconformity with law-required elements. The Fed rejected Custodia’s subsequent plea to reassess its membership. In line with these rejections, a comprehensive report published in March 2023 revealed that the Fed's unease about banks with substantial involvement with the crypto sector led to the denial of Custodia's membership. Custodia started operations in August 2023 despite setbacks inflicted by the Fed. Established in 2020, Custodia Bank fills the gap between digital assets and the U.S. dollar payment system while also providing digital asset custody. Originating as the Avanti Financial Group, the company is headquartered in Cheyenne, Wyoming. The bank has not responded yet to a comment request made by Cointelegraph. The necessity of safeguarding crypto in an unstable market is a hot topic amongst Bitcoin experts and old hands.
Published At
11/7/2023 1:55:22 PM
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