- Custodia Bank has launched its crypto-focused custody platform.
- The service will target specific commercial clients.
- The launch follows a series of regulatory challenges.
Custodia Bank’s Bitcoin custody platform is officially live following regulatory approval by the Wyoming Division of Banking to offer segregated (not omnibus) custody accounts in various U.S. states.
Custodia Bank is a crypto-friendly banker specializing in digital asset payment and custody solutions for U.S. commercial customers, 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.
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“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 Bitcoin custody approval follows a series of regulatory upheavals from the beginning of the year. In January, the U.S. Federal Reserve Board rejected the bank’s application to join the Federal Reserve System membership.
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A month later, the board again denied the bank’s request to reconsider its membership in the Federal Reserve System. The board noted that Custodia Bank’s “novel business model and proposed focus on crypto-assets presented significant safety and soundness risks,” inconsistent with banking practices.
Despite these challenges, the bank opened officially on August 11, and almost two months later, it has finally managed to set up a Bitcoin custody service.
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