Custodia Bank Set to Roll Out Bitcoin Custody Services
Custodia Bank chief executive Caitlin Long reveals advanced plans to introduce the Bitcoin custody services. Speaking to the Bitcoin 2023 attendees, she reiterated that Custodia would satisfy its 60-day notice to offer Bitcoin custody services to its clients.
Wyoming-based SPDI to Offer Custody Services for Clients
The Custodia Bank founder revealed to the Bitcoin panel in the Thursday, May 18 session that she established the bank since the world displayed no signs of hyperbitcoinization. She added that the Wyoming-chartered institution offering special purpose depository (SPDI) had declared it would provide custody-as-a-service to the bitcoin holders in April.
Long informed the morning panel of the need for compliance with the legal provisions that mandate investment companies, corporate treasurers, and registered investment advisors to segregate assets custody from assets management.
Issuing 60-day Notice a Legal Requirement in Wyoming
Long indicated that the 60 days notice is a critical requirement for all SPDIs chartered in Wyoming detailing their intentions to offer their clients custody services for digital assets.
Long opened her remarks by revealing why a hardcore Bitcoin desires a bank. The Custodia Bank founder ruled out the sentiments of the world’s readiness for hyperbitcoinization.
Co-existence Between Cryptos and Traditional Finance Healthy
Long clarified that cryptocurrency enthusiasts desire the conventional financial system to be extinguished. Instead, Long added the continued existence of digital and traditional financial systems.
Long informed the Thursday morning panel at the Bitcoin 2023 that the mutual coexistence of the two financial systems is ideal. The Custodia Bank chief indicated that nurturing the connectivity of the two systems is mutually beneficial. The pronouncement indirectly criticized the cryptocurrency industry as a threat to blow up the traditional finance segment.
Crypto-Friendly Laws Transforming Wyoming State into a Crypto Heaven
News of adding the custody-as-a-service feature marks a critical achievement for Custodia Bank. Formerly Avanti, Long-led SPDI has since 2020 been offering a comprehensive suite for customers holding digital assets within its portfolio.
Long recalled the journey of its establishment by lauding the Wyoming state for its crypto-friendly laws. As such, she leveraged the opportunity to establish Custodia as a pioneer SPDI to offer custodial services to the clients.
The Thursday session featured Dylan Leclair, who heads market research at the Bitcoin Magazine, Lumida chief executive Ram Ahluwalia and 3iQ research executive Mark Connors moderating the Bitcoin 2023 panel.
Long portrayed a conciliatory character during the conversation. Her pronouncements differed from the past criticism of the Fed alleging hypocrisy for inaction.
The announcement of adding custody services coincides with the ongoing lawsuit initiated by Custodia claiming the Fed unfairly treats its quest of securing membership and access to the master account.
Federal Reserve Yet to Approve Custodia Bank Membership to Fedwire Network
Long considers that approval of its master account application will open opportunities for the Fedwire network. Custodia Bank will benefit from the network that executes hundreds of millions of transactions annually. In particular, Custodia Bank admitted that the Fedwire network facilitated a $1 quadrillion transfer value in 2022.
Long had previously lamented the unfair treatment by subjecting the Custodia Bank application to unlawful delay. She indicates that a process that takes seven days has dragged on for over 19 weeks. The delay prompted Custodia Bank to file a case against the Federal Reserve.
Long refrained from conveying any updates regarding the lawsuit during the Thursday morning panel. Nonetheless, she criticized the Federal Reserve conduct and handling of the bank collapses witnessed in March.
Long questioned the anti-crypto speech delivered by Michael Barr in his role as supervision executive at FED. She indicated that Barr had in the morning when Silicon Valley Bank suffered a run, meaning that banks supervised by the Fed cannot experience runs. Long revealed that Barr bragged that the Fed subjects the institutions to prudential oversight and supervision, unaware that the Silicon Valley run was ongoing.
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