Custodia Bank’s Bitcoin custody platform has received regulatory approval from the Wyoming Division of Banking, and it is now operational. They offer segregated custody accounts, not omnibus accounts, in multiple U.S. states. Custodia Bank is a crypto-friendly financial institution that specializes in providing digital asset payment and custody solutions to U.S. commercial customers. Their services cater to a wide range of clients, including fund managers, investment advisers, corporate treasurers, and fiduciaries.
Integrated Bitcoin and U.S. Dollar Services
According to Custodia Bank’s November 7 announcement on Twitter (X), following the launch of the new custody platform, the bank will now offer integrated Bitcoin custody and U.S. dollar services.
As a non-lending bank, we offer integrated Bitcoin custody & US dollar services (Not FDIC Insured) under one roof, which simplifies user operations and reduces risk,” the bank stated.
The bank noted that since the Bitcoin custody platform was built in-house, it would appreciate engaging potential clients willing to provide user feedback.
But as successful as the November launch is, it didn’t come easy.
Marching Through the Regulatory Storm
Custodia’s approval for Bitcoin custody comes after facing a series of regulatory obstacles earlier this year. In January, the U.S. Federal Reserve Board rejected the bank’s application to become a member of the Federal Reserve System.
A month later, the board once again declined the bank’s request for reconsideration, citing concerns about Custodia Bank’s “unique business model and its emphasis on crypto-assets,” which were seen as posing substantial safety and soundness risks not in line with traditional banking practices.
Despite these initial challenges, the bank officially commenced operations on August 11. After nearly two months, it has now successfully established its Bitcoin custody service.
