Custodia Bank, founded by crypto advocate Caitlin Long, has successfully obtained regulatory approval to launch a Bitcoin custody platform, marking a significant milestone in the world of cryptocurrency banking. The platform, which offers segregated custody accounts, has recently gone live following approval from the Wyoming Division of Banking.
Custodia Bank’s Bitcoin Custody Service Goes Live
On November 7, Custodia Bank announced that its Bitcoin custody platform is now operational, catering exclusively to businesses such as fiduciaries, investment advisers, fund managers, and corporate treasurers. This crypto-friendly bank prides itself on providing segregated custody accounts, offering a level of security and transparency that distinguishes it from omnibus custody services.
Caitlin Long, CEO and founder of Custodia Bank, shared this exciting news with the crypto community, receiving warm congratulations for the launch of the Bitcoin custody platform.
This development comes at a time when the crypto community eagerly anticipates the approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
Geographical Availability and Services
The Bitcoin custody service is currently available in the United States, and Custodia Bank has expressed interest in expanding its services beyond its current jurisdiction.
Notably, as a non-lending bank, Custodia Bank offers integrated Bitcoin custody and U.S. dollar services. However, it is essential to note that these services are not covered by U.S. Federal Deposit Insurance Corporation (FDIC) insurance.
Historical Struggles and Regulatory Acceptance
Custodia Bank has made history by securing regulatory approval from the Wyoming Division of Banking for its Bitcoin custody service. This accomplishment represents a significant step forward in the bank’s journey to gain recognition in the traditional banking sector.
Furthermore, the crypto-friendly bank is appreciative of the support it has received from the community, which has played a crucial role in refining its services through valuable user feedback.
Caitlin Long’s Ongoing Efforts for Bitcoin
Despite its success in launching the Bitcoin custody platform, Custodia Bank has faced challenges in its quest for wider acceptance. The U.S. Federal Reserve Board previously rejected the bank’s request to become a part of the Federal Reserve system due to its strong focus on Bitcoin and the absence of FDIC-insured deposits.
In August, Caitlin Long’s bank announced its resumption of operations. Although many aspects of its business model remain restricted by regulatory hurdles, the approval of the Bitcoin custody service is also seen as a positive step.
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