• 28 May, 2024
News

Custodia Bank Launches Bitcoin Custody Platform Following Regulatory Approval

Custodia Bank, a financial institution founded by prominent Bitcoin advocate Caitlin Long, has officially launched its Bitcoin custody platform. The announcement was made on November 7, marking a pivotal moment for the Wyoming-based institution. Custodia Bank’s move into the cryptocurrency custody realm is targeted towards businesses such as fiduciaries, investment advisers, fund managers, and corporate treasurers.

This launch follows Custodia Bank’s recent approval from the Wyoming Division of Banking to commence operations with its Bitcoin custody service. The bank, which is celebrated for being cryptocurrency-friendly, revealed its Bitcoin custody platform on X (formerly Twitter), detailing its services tailored for specific financial sectors.

Custodia Bank’s custody service offers segregated accounts on its custom-built Bitcoin custody platform. The institution prides itself on being a non-lending bank created by Bitcoin enthusiasts. Notably, the platform integrates Bitcoin custody services with U.S. dollar services, streamlining user operations and mitigating risks for its clients. Custodia Bank emphasized the importance of user feedback, expressing gratitude to those who assisted in refining their Bitcoin custody platform.

The journey leading to this launch was not without hurdles. Custodia Bank faced regulatory challenges earlier in the year when its application to join the Federal Reserve System was rejected by the Federal Reserve Board in January 2023. The rejection was rooted in concerns about financial institutions engaging extensively in cryptocurrency-related activities. Despite these setbacks, Custodia Bank persevered, ultimately gaining approval from the Wyoming Division of Banking, enabling it to roll out its innovative Bitcoin custody services.

Founded in 2020, Custodia Bank, formerly known as Avanti Financial Group, operates from its headquarters in Cheyenne, Wyoming. The institution’s mission revolves around bridging the gap between digital assets and the U.S. dollar payments system. Custodia Bank’s launch of its Bitcoin custody platform signifies a step forward in providing secure and reliable cryptocurrency storage solutions for institutional clients.

With Custodia Bank’s entry into the cryptocurrency custody market, the financial landscape is witnessing a significant shift, highlighting the growing integration of digital assets into mainstream financial services. As the institution begins its operations, businesses in need of robust and trustworthy Bitcoin custody services now have a viable option in Custodia Bank, an establishment built by Bitcoiners, for Bitcoiners.

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