- Earlier the US Fed Board denied Custodia Bank’s application to join the Fed system.
- Custodia Bank has received approval from the Wyoming Division of Banking.
Custodia Bank stated it had been granted permission to operate a Bitcoin custody platform. Now available to the public is a Bitcoin custody service that provides individual client accounts rather than shared ones. Custodia Bank has received permission to launch a Bitcoin custody service from the Wyoming Division of Banking.
On November 7th, Custodia Bank announced the launch of its Bitcoin custody platform in a Twitter post. The Bitcoin custody service was developed solely for institutional investors, fiduciaries, and investment advisors.
Major Boost for the Sector
Caitlin Long, CEO and the founder of Custodia Bank, recently informed the crypto community of some interesting developments. Caitlin Long’s development of a Bitcoin custody platform has been met with widespread praise from the crypto community as it awaits the United States SEC’s decision on whether or not to approve a spot Bitcoin ETF.
Custodia Bank has previously shown interest in expanding its Bitcoin custody offerings outside the United States. Custodia Bank is a non-lending bank that provides Bitcoin custody and US dollar services under a unified platform but is not US FDIC-insured.
With the authorization of the Wyoming Division of Banking, Custodia Bank achieves a significant feat especially with challenging regulatory scrutiny in the United states. The crypto-friendly financial institution was appreciative of the community’s participation and input in developing new features and fixing old ones.
Due to its exclusive emphasis on Bitcoin and its lack of FDIC-insured deposits, the US Federal Reserve Board denied Custodia Bank’s application to join the Fed system.
Although the Federal Reserve has impeded most of Caitlin Long’s bank’s business strategy, the bank declared its resumption of operations in August. The fact that the Fed has approved a Bitcoin custody service is a boost for the widespread use of cryptocurrencies.
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