Kathleen Long Custodia Bank Launches Bitcoin Custodial Platform

Custodia Bank, a cryptocurrency-friendly bank founded by Bitcoin activist Caitlin Long, has launched a BT custody platform.

The firm took to X (formerly Twitter) on Nov. 7 to announce the launch of Custodia Bank's Bitcoin (BTC) custody service aimed at fiduciaries, investment advisors, fund managers and corporate treasurers.

Custodia Bank began operations after receiving a license from the Wyoming Division of Banking, according to the announcement.

Announcing the news, Custodia Bank emphasized that the platform is a non-lending bank built by Bitcoiners that offers separate custodial accounts on a “custom-built Bitcoin custody platform.”

The statement said Custodia Bank offers integrated bitcoin custody and US dollar services on a single platform to simplify user operations and reduce risks. Custodia Bank added:

“We're especially grateful to everyone who wants to help us by providing user feedback as we build our Bitcoin storage platform in-house.”

Custodia Bank's approval from the Wyoming Division of Banking follows a series of regulatory challenges for the firm. In the year In January 2023, the Federal Reserve Board rejected the bank's application to become a member of the Federal Reserve System, saying it was “inconsistent with the statutory requirements.” The federation subsequently rejected Custodia's request to reconsider its application for membership in the system.

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In the year In a detailed report issued in March 2023, the Federation Board decided to reject the Custodia's application due to the concerns of banks that are heavily involved in activities related to the crypto industry. Custodia Bank opened for business in August 2023, although the Fed blocked its proposed business model.

In the year Founded in 2020, Custodia is a bank that aims to bridge the gap between digital assets and the US dollar payment system and digital asset custodian. The firm was formerly known as Avanti Financial Group and is based in Cheyenne, Wyoming.

Custodia Bank did not immediately respond to Cointelegraph's request for comment.

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