On November 7, 2023, amidst the ongoing and substantial global crypto adoption, the pro-Bitcoin advocate Catiline Long announced the launch of her crypto-friendly Custodia bank’s Bitcoin Custody platform. It has been observed that the overall sentiment toward crypto is positive, resulting in the attraction of new investors.
Wyoming Division of Banking approval marks a milestone
Long shared this remarkable achievement on X (formerly Twitter) and stated, “Custodia Bank was built by Bitcoiners, and we offer segregated custody accounts on our custom-built custody platform.” Long also shared a whitepaper that focuses on providing Bitcoin custody services to businesses, including fiduciaries, investment advisers, fund managers, and corporate treasurers.
This launch comes shortly after Custodia Bank received approval from the Wyoming Division of Banking to offer its Bitcoin custody service, marking a significant milestone for the institution.
Custodia Bank’s broad range of services
Custodia Bank also offers services such as Digital asset businesses, Fintechs, Banks, Corporate treasurers, Trusts, Pension Funds, start-ups, and many other related businesses. However, Custodia Bank highlighted that their platform is a non-lending bank created by individuals who are passionate about Bitcoin. They offer segregated custody accounts on their custom-built Bitcoin custody platform.
As a pro-Bitcoin, Long’s Bitcoin Custody platform integrates Bitcoin custody and U.S. dollar services into one, streamlining user operations and reducing associated risks. In their statement, Custodia Bank expressed their gratitude to users who provided valuable feedback during the platform’s development.
DZ Bank’s introduction of a similar Crypto custody platform
One day before Custodia’s launch, Germany’s DZ Bank also introduced a similar crypto custody platform, which is specifically designed for Bitcoin. The perception of the majority of capital markets investors has shifted toward cryptocurrencies, leading to a rapid adoption of crypto.
Custodia Bank’s journey to approval from the Wyoming Division of Banking wasn’t without challenges. In January 2023, the Federal Reserve Board rejected the bank’s application to become a member of the Federal Reserve System, citing inconsistency with the required legal factors. Despite the setback, the bank was determined to move forward.
The Federal Reserve’s concerns were primarily related to banks heavily involved in activities associated with the cryptocurrency industry. Nevertheless, Custodia Bank managed to commence operations in August 2023, although the Fed restricted much of its intended business model.