Wyoming’s Custodia Bank to Launch Bitcoin Custody Services Amid Federal Reserve Lawsuit

Wyoming bank launching Bitcoin custody service, legal asset segregation, traditional and crypto financial systems coexistence, potential growth in financial industry, panel discussion backdrop, warm and bright mood, synergistic effect, financial inclusion and stability, challenging the Federal Reserve, interconnected systems.

The Wyoming-based Custodia Bank is preparing to launch a Bitcoin custody service for its clients, as announced by its Founder and CEO Caitlin Long at a recent panel discussion at Bitcoin 2023. This news comes after the bank issued its 60-day advance notice in April, in accordance with the requirements set for Wyoming-chartered Special Purpose Depository Institutions (SPDIs) that wish to provide digital asset custody services to their customer base.

Long explained that certain businesses, such as investment companies, registered investment advisors, and corporate treasurers, are legally required to segregate the custody of assets from their management. Acknowledging the growing interest in cryptocurrencies and their potential to coexist with traditional financial systems, Long believes that linking the two systems can promote stability in the financial sector.

Having provided a comprehensive suite of financial services for digital asset customers since 2020, Custodia Bank, previously known as Avanti, was among the first institutions to register under Wyoming’s crypto-friendly regulations. The panel discussion at Bitcoin 2023, which featured industry experts Ram Ahluwalia, Mark Connors, and Dylan Leclair, reflected the forward-thinking nature of the crypto space and the potential growth it can bring to the financial industry.

Alongside its plans for Bitcoin custody services, Custodia Bank is currently involved in a lawsuit against the Federal Reserve. The dispute concerns its application to become a member institution and its request for access to a master account, which would enable it to partake in the Fedwire network. This network handles millions of transactions annually, with a total value of over $1 quadrillion in assets transferred in 2022 alone.

Custodia Bank has accused the Federal Reserve of an unlawful 19-week delay in processing its application, a process which typically takes no more than seven days. While Long did not

Source: Decrypt

Sponsored ad