Custodia Bank’s launch of Bitcoin custody follows a series of regulatory challenges the firm faced earlier this year.
Custodia Bank, a cryptocurrency-friendly bank founded by Bitcoin (BTC) advocate Caitlin Long, has launched its Bitcoin custody platform.
The firm took to X (formerly Twitter) on Nov. 7 to announce the launch of Custodia Bank’s Bitcoin custody service targeting businesses like fiduciaries, investment advisers, fund managers and corporate treasurers.
The launch comes soon after Custodia Bank earned approval from the Wyoming Division of Banking to go live with its Bitcoin custody service, the announcement notes.
Announcing the news, Custodia Bank emphasized that the platform is a non-lending bank built by Bitcoiners and offers segregated custody accounts on its “custom-built Bitcoin custody platform.”
The statement said that Custodia Bank offers integrated Bitcoin custody and U.S. dollar services on one platform, which is designed to simplify user operations and reduce risks. Custodia Bank added:
“Since we built our Bitcoin custody platform in-house, we’re especially grateful to those willing to help us by providing user feedback.”
Custodia Bank’s approval from the Wyoming Division of Banking follows a series of regulatory challenges for the firm. In January 2023, the Federal Reserve Board rejected the bank’s application to become a member of the Federal Reserve System, saying it was “inconsistent with the required factors under the law.” The Fed subsequently denied Custodia’s request to reconsider its membership application in its system.
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In a detailed report in March 2023, the Fed’s board said the decision to reject Custodia’s application was due to concerns about banks with a high concentration of activities related to the crypto industry. Custodia Bank reportedly opened for business in August 2023, though the Fed has blocked much of its proposed business model.
Founded in 2020, Custodia is a bank aiming to bridge the gap between digital assets and the U.S. dollar payments system and a digital asset custodian. The firm was formerly known as Avanti Financial Group and is based in Cheyenne, Wyoming.
Custodia Bank did not immediately respond to Cointelegraph’s request for comment.
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