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- Caitlin Long asserts that banks, as regulated custodians, play a crucial role.
- According to the company’s Twitter, Custodia is currently available only to businesses.
On Friday, Custodia announced that it is now accepting deposits in U.S. dollars from clients in select locations and will soon begin offering Bitcoin custody services. The crypto-friendly bank is also providing services for U.S. government money market funds to its clientele. Custodia’s CEO, Caitlin Long, contends that banks, as regulated custodians, are vital, despite the industry’s tendency towards regulatory theatrics.
She stated, “Custodia has always maintained that custodians in this sector will ultimately be banks,” emphasizing that custodians in the securities industry are banks rather than trust companies or other non-bank entities.
As noted on the company’s Twitter, Custodia is presently available only to businesses and is not yet operational in all 50 states, as they are proceeding “slowly and carefully.”
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Ongoing Legal Battle
The approach of the crypto-friendly bank contrasts with the crypto industry’s ethos of “moving fast and breaking things,” as Long described, since “banks provide customers with better protections than non-banks.” Today’s announcement conveyed a positive tone, highlighting their achievement of a long list of tasks that are now completed.
Despite today’s success, Custodia continues to contest the Federal Reserve regarding the repeated denial of the bank’s application to access FedWire, citing significant risks to the system’s safety and soundness.
Long is currently engaged in a legal dispute with the Fed, which she believes is attempting to “turn tail and run” and “make an example” of Custodia. Eight other fintech companies, including four from the cryptocurrency sector, have also faced obstacles in their efforts to secure a master account with the Federal Reserve.
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