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Crypto-friendly bank Custodia Bank, founded by Bitcoin advocate Caitlin Long, has announced a new service for its customers. The bank has launched a Bitcoin storage platform. The company publicly announced the launch of its Bitcoin storage service for businesses such as investment advisors, fund managers, and corporate treasurers on November 7th.
Custodia Bank’s New Service Draws Attention
In the announcement shared by the company, it was revealed that the launch received approval from the Wyoming Banking Division to implement Custodia Bank’s Bitcoin storage service, and shortly after that, the launch took place.
Custodia Bank, announcing the news to the public, emphasized that the Bitcoin storage platform is a non-lending bank service offered to Bitcoin investors, and it provides segregated storage accounts in a specially developed Bitcoin storage platform.
According to the statement made by Custodia Bank, it offers integrated Bitcoin storage and US dollar services on a single platform designed to facilitate user transactions and reduce potential risks. The announcement by Custodia Bank included the following words:
“We are particularly grateful to those who want to help us by providing user feedback since we have created our Bitcoin storage platform in-house.”
Federal Reserve Hinders Custodia Bank
The legal approval received by Custodia Bank from the Wyoming Banking Division came immediately after a series of regulatory challenges for the company. In January 2023, the Federal Reserve Board rejected the bank’s application to become a member of the Federal Reserve System, claiming that it was inconsistent with the factors required by the law. Following this development, the Fed also rejected Custodia’s request to reconsider its membership application to their system.
In a detailed report released in March 2023, the Federal Reserve Board explained that the decision to reject Custodia Bank’s application was based on concerns about banks with intensive activities related to the crypto industry. It was revealed that Custodia Bank started its operations in August 2023 but that the majority of the business model proposed by Fed officials was blocked.
Established in 2020, Custodia stands out as a bank and crypto asset custodian aiming to bridge the gap between crypto assets and the US dollar payment system. The company was previously operating as Avanti Financial Group and is based in Cheyenne, Wyoming.
