Custodia Bank, an institution established by Bitcoin advocate Caitlin Long focusing on cryptocurrencies, has recently introduced its Bitcoin custody platform.
On November 7, the firm announced the launch of Custodia Bank’s Bitcoin custody service, which targets investment advisers, fund administrators, corporate treasurers, and fiduciaries. The announcement was made on X (formerly Twitter).
According to the announcement, the launch occurs shortly after Custodia Bank received authorization from the Wyoming Division of Banking to activate its Bitcoin custody service.
Custodia Bank emphasized in its announcement of the news that the platform is a non-lending bank created by Bitcoiners and that its “custom-built Bitcoin custody platform” provides segregated custody accounts.
Custodia Bank provides integrated Bitcoin custody and U.S. dollar services on a single platform to streamline user operations and mitigate risks, according to the statement. Additionally, Custodia Bank stated:
“Since we built our Bitcoin custody platform in-house, we’re especially grateful to those willing to help us by providing user feedback.”
Wyoming Division of Banking, approval of Custodia Bank follows a sequence of regulatory obstacles for the institution.
The Federal Reserve Board denied the bank’s application to join the Federal Reserve System in January 2023, citing “inconsistencies with the required factors under the law.”
In a comprehensive report published in March 2023, the Fed’s board explained that concerns regarding banks with a high concentration of crypto industry-related activities influenced the decision to reject Custodia’s application.
According to reports, Custodia Bank commenced operations in August 2023; however, a significant portion of its proposed business model has been obstructed by the Federal Reserve.
Established in 2020, Custodia is a financial institution that serves as a custodian of digital assets and a bridge between digital assets and the U.S. dollar payments system.
Formerly referred to as Avanti Financial Group, the organization is headquartered in Cheyenne, Wyoming.