March 27, 2024
Custodia Bank Launches Bitcoin Custody Platform Amid Regulatory Triumph
Latest Cryptocurrency News

Custodia Bank Launches Bitcoin Custody Platform Amid Regulatory Triumph

Custodia Bank, the cryptocurrency-friendly financial institution established by Bitcoin advocate Caitlin Long, has unveiled its Bitcoin custody platform, BT custody. This launch comes after the firm overcame several regulatory challenges earlier this year. On November 7, the announcement was made on X (formerly Twitter), marking an important development for Custodia Bank.

The platform has been specifically designed to cater to businesses such as fiduciaries, investment advisers, fund managers, and corporate treasurers. The Wyoming Division of Banking approved Custodia Bank to go live with this service, signaling a significant milestone for the institution.

Custodia Bank emphasized that its platform is a non-lending bank created by individuals with a strong affiliation to Bitcoin, offering segregated custody accounts on a bespoke Bitcoin custody platform. Notably, this platform provides integrated Bitcoin custody and U.S. dollar services in one unified platform, streamlining user operations and mitigating risks. In their statement, Custodia Bank expressed their gratitude to those who had contributed by providing user feedback during the platform’s development.

It’s worth mentioning that Custodia Bank’s approval from the Wyoming Division of Banking follows a series of regulatory challenges the bank faced earlier. In January 2023, the Federal Reserve Board rejected the bank’s application to join the Federal Reserve System, citing inconsistencies with the required legal factors. Subsequently, the Fed declined Custodia’s request for reconsideration, thus blocking a significant portion of the bank’s proposed business model.

Established in 2020, Custodia Bank aims to bridge the gap between digital assets and the U.S. dollar payment system, functioning as both a digital asset custodian and a financial institution. Previously known as Avanti Financial Group, it operates out of Cheyenne, Wyoming.

Image by freepik

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