Custodia Bank, a non-lending bank built by Bitcoiners, has announced the launch of its Bitcoin custody service for businesses after receiving regulatory approval from the Wyoming Division of Banking.
The bank has announced the launch of its Bitcoin custody service for businesses after receiving regulatory approval from the Wyoming Division of Banking.
The Bitcoin custody service is now live, offering segregated (not omnibus) custody accounts on its custom-built Bitcoin custody platform.
Custodia Bank revealed the news of its Bitcoin custody service launch in an X post on November 7.
The bank stated that its Bitcoin custody service is exclusively built for businesses, including fiduciaries, investment advisers, fund managers, and corporate treasurers.
The non-lending bank claimed that it is the first bank to offer segregated custody accounts for Bitcoin, which means that each customer’s Bitcoin is stored separately and not pooled with others.
CEO and founder Caitlin Long shared the exciting news with the crypto community on Twitter, expressing her gratitude for the support and feedback from the users.
She also said that Custodia Bank is a bank built by Bitcoiners and that it is not US FDIC-insured, as it does not lend out its deposits.
The crypto community congratulated Caitlin Long for the launch of the Bitcoin custody service amid anticipation of spot Bitcoin ETF approval by the U.S. SEC.
Some users also expressed their interest in opening an account with Custodia Bank, while others praised the bank’s vision and innovation.
The launch of the Bitcoin custody service by Custodia Bank comes after the bank faced some challenges from the U.S. Federal Reserve Board, which rejected its request to join the Fed system because of its focus on Bitcoin and its lack of FDIC-insured deposits.
This decision prevented the bank from accessing the Fed’s payment system and offering real-time gross settlement for its customers.
In August, Caitlin Long announced that the bank had resumed operations, though the Fed had blocked much of its business model. She also said the bank was working on alternative solutions to provide its customers with the best possible service.
The launch of the Bitcoin custody service by Custodia Bank is a significant milestone for the bank and the crypto industry, as it showcases the potential of Bitcoin and the regulatory support from Wyoming.
By offering segregated custody accounts for Bitcoin, the bank aims to provide its business customers with a secure and reliable way to store and manage their digital assets.
