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- Custodia Bank is preparing to introduce a Bitcoin custody service.
- Caitlin Long states that the crypto sector is not yet prepared for hyperbitcoinization.
During a panel at Bitcoin 2023, several prominent figures, including Custodia Bank’s CEO Caitlin Long and Bitcoin Magazine’s Head of Market Research Dylan LeClair, participated. Caitlin Long revealed that Custodia Bank plans to launch a Bitcoin custody service before the onset of ‘hyperbitcoinization.’
Caitlin Long further remarked:
“Certain business types, including investment firms, registered investment advisors, corporate treasurers, and various fiduciaries, are legally obligated to keep asset custody distinct from asset management.”
It appears that Custodia Bank issued a two-month notice in April, signaling the initiation of Bitcoin custody services for its clients. As one of Wyoming’s Special Purpose Depository Institutions (SPDIs), Custodia Bank typically provides advance notice when intending to commence custody of any digital asset.
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This announcement followed a lawsuit filed by Custodia Bank against the Federal Reserve (FED). Consequently, the approval process is expected to begin with the Fedwire network, which manages millions of transactions annually and recorded $1 quadrillion in transfers in 2022.
Nonetheless, the crypto bank processes applications within a week to address an ‘apparently unlawful delay’ that lasted 19 weeks, which has prompted the FED to adhere to court regulations. In the meantime, Long criticized the FED for its actions during the bank failures that occurred in March. Additionally, she stated:
“On the morning of the Silicon Valley bank incident, the head of supervision at the Fed, [Michael Barr], boasted in his anti-crypto speech that banks under Fed supervision do not experience bank runs due to their prudential oversight, even as the Silicon Valley run was unfolding.”
Moreover, the CEO of Custodia Bank expressed that she founded the institution as a dedicated supporter of Bitcoin. She indicated that the world is not yet ready to embrace ‘hyperbitcoinization’ at this time.
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