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Edited by Kahn332 at 22-12-2023 05:05 AM
Crypto-friendly bank Custodia Bank has announced the official launch of its Bitcoin custody platform for customers in certain states in the United States.
On November 7th, Custodia Bank, formerly known as Avanti Financial Group, announced on X (formerly Twitter) that they have now introduced a dedicated platform offering Bitcoin custody services to entities such as trustees, investment advisors, fund managers, and corporate finance officers.
Founded in 2020 by former Morgan Stanley Managing Director Caitlin Long, Custodia Bank is headquartered in Cheyenne, Wyoming, with a mission to facilitate the integration of digital assets with the US dollar payment system and provide digital asset custody services.
In August, the bank announced plans to accept USD deposits, targeting US business clients. It also hinted at the upcoming launch of Bitcoin custody services. Custodia Bank has obtained regulatory approval from the Wyoming Division of Banking to offer Bitcoin custody services. The platform provides segregated custody accounts through its customized Bitcoin custody platform, combining Bitcoin custody with USD services on a user-friendly single platform to simplify operations and minimize risks.
Under the cryptocurrency-friendly laws passed in Wyoming in 2019, the bank's Special Purpose Depository Institution charter positions Custodia Bank as one of the pioneering institutions to gain this status. As a non-lending institution, Custodia Bank's primary focus is Bitcoin custody.
As part of its commitment to user satisfaction and platform improvement, Custodia Bank expresses gratitude to those who provided valuable feedback during the development of its Bitcoin custody platform.
""As we built our Bitcoin custody platform in-house, we're especially thankful to those who helped us by providing user feedback.""
Launching amidst regulatory scrutiny and legal battles with the Federal Reserve
At the time of Custodia Bank's formal establishment in 2020, the cryptocurrency industry was facing increasing scrutiny and regulatory pressure in the wake of prominent scandals in the digital asset space. The bank emphasizes its ""regional bank-style"" risk management plan and pledges to become a regulated bank in the face of challenges.
Custodia also filed lawsuits against the Federal Reserve and the Federal Reserve Bank of Kansas City, accusing them of ""unlawfully delaying"" their request to join the central bank's payment system, which the bank considers crucial for its effective operation.
The Federal Reserve rejected Custodia's application on serious safety and soundness grounds, and the Kansas City Fed quickly followed suit, denying the bank's request to establish a master account with the Federal Reserve.
In a comprehensive report released in March 2023, the Federal Reserve Board explained that its decision to reject Custodia's application was due to concerns about the bank's extensive involvement in cryptocurrency-related activities.
Although Custodia Bank reportedly commenced operations in August 2023, the Federal Reserve has hindered its proposed business model in many aspects. |
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Post time 12-11-2023 20:14:48