In a recent development, the financial institution Custodia revealed a significant advancement by introducing Bitcoin custodial services. The establishment has commenced accepting deposits denominated in U.S. dollars from specific geographical regions.
Furthermore, Custodia has outlined its forthcoming initiative to introduce Bitcoin custody services in the near future. This strategic move aligns with the institution’s engagement with clients associated with government money market funds within the United States, thus solidifying its prominent position as a cryptocurrency-friendly entity.
Caitlin Long, the skilled CEO of Custodia, presents the viewpoint that regulated custodial banks are crucial, despite the industry’s love for regulatory showmanship. She compares this to the securities sector, where custodians become banks instead of other options.
Custodia’s Twitter account shows that the bank now offers services only to businesses. Their plan to expand is careful and methodical, and it hasn’t reached all 50 states yet. This reflects their cautious and deliberate approach to growth.
Custodia’s Unique Approach in Cryptocurrency Realm and Ongoing Legal Battle with Federal Reserve
The way Custodia operates is different from the super-fast pace of the cryptocurrency world. Caitlin Long calls this “moving fast and breaking things.” She explains that banks give customers better protection than non-bank alternatives. In a recent statement, the bank proudly lists many old tasks that are now not needed anymore.
However, even in the wake of this triumph, Custodia remains entangled in a legal dispute with the Federal Reserve. The heart of the contention revolves around the repeated denial of Custodia’s application to partake in FedWire, a situation attributed to significant hazards that the system’s integrity and stability could potentially face.
Caitlin Long is presently entrenched in a legal clash with the Federal Reserve, a body that she believes is striving to extricate itself from a predicament by making an example out of Custodia. This trend of rejection isn’t exclusive to Custodia, as eight other fintech enterprises, including four from the cryptocurrency sphere, have encountered analogous barriers to establishing master accounts with the Federal Reserve.
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