source: cryptoavanza.com
- Custodia Bank, founded by CEO Caitlin Long, has launched its services in Wyoming, catering to the needs of crypto enthusiasts and innovative banking approaches.
- The bank offers U.S. dollar deposits and government money market funds, catering to businesses like digital asset firms, fintech companies, banks, corporate treasurers, trusts, pension funds, and startups.
- Custodia operates under a special purpose depository institution (SPDI) framework, offering financial services for both regular dollars and digital assets.
Custodia Bank has made its debut, answering the call from crypto enthusiasts and proponents of innovative banking approaches. The bank is all about technology and customers, and its CEO, Caitlin Long, is grateful for the supportive legal environment in Wyoming, the team’s efforts, and investor backing. Custodia stands out by focusing on risk management and sticking to regulations.
Their services now cover U.S. dollar deposits and U.S. government money market funds. These offerings are tailored for U.S. businesses like digital asset firms, fintech companies, banks, corporate treasurers, trusts, pension funds, and startups. While they’re starting locally, Custodia plans to go global, using its unique reserve model to provide clear rules and minimize risks.
Custodia Bank operates under a groundbreaking framework called the special purpose depository institution (SPDI), which lets them offer a range of financial services for both regular dollars and digital assets. Their demand deposit accounts are backed by a 100% reserve requirement, and they’re also diving into programmable accounts, payments, settlement, and upcoming custody products through APIs.
Getting to this point wasn’t easy for Custodia Bank. In December, they outlined their plans to the U.S. Federal Reserve, even though the requirement was later dropped. They’ve faced challenges, formed new partnerships, and created innovative services to meet market demands.
Despite a bump in January 2023 when the Federal Reserve Board denied their application due to concerns about crypto assets and risk management, Custodia didn’t give up. This denial was part of the wider skepticism around digital assets and unique banking approaches. But Custodia’s determination and alignment with Wyoming’s innovative legal framework have helped them overcome obstacles and become a regulated bank.
