Home Crypto News Custodia Bank Launches Bitcoin Custody Service

Custodia Bank Launches Bitcoin Custody Service

08 Nov, 2023 Crypto News

Custodia Bank Launches Bitcoin Custody Service

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

On November 7, the company announced the launch of Custodia Bank's Bitcoin (BTC) custody service, which is aimed at businesses such as fiduciaries, investment advisers, fund managers, and corporate treasurers.

Custodia Bank began rolling out custody in October 2023 after receiving approval from the Wyoming Division of Banking, according to Custodia founder and CEO Long.

"The regulator conducted the statutorily required pre-launch examination of us," the executive said, noting that Wyoming has specific rules that special-purpose depository institutions must follow before they can launch custody.

Custodia Bank operates as Custodia Digital Services in certain U.S. states, including Washington, Minnesota, and Texas, according to the bank's website.

In other states, such as California and Wyoming, the bank is known as Custodia Bank.

According to Long, eligible users include U.S.-based businesses in states where the bank is licensed and that meet Custodia's customer onboarding requirements.

Custodia Bank stressed that it is a non-lending bank founded by Bitcoiners that provides segregated custody accounts on its custom-built Bitcoin custody platform.

Unlike the omnibus custody model, the segregated account model for Bitcoin custody is intended to keep customers' assets separate from the company's assets, according to Custodia's white paper.

"The omnibus custody model dominates traditional financial markets, with most securities held at central securities depositories like the Depository Trust Company," it said.

It went on to say:

"We offer segregated accounts, which have superior customer protections over competing omnibus accounts that are standard offerings in the digital asset custody industry, and which commingle customer digital assets."

Sources:

https://cointelegraph.com/news/custodia-bank-bitcoin-custody

https://x.com/custodiabank/status/1721861898482651304?s=20

https://custodiabank.com/dba/

https://custodiabank.com/f/custody-whitepaper/t/

Back to Crypto News
Related articles
Tether USDT Hit Historic $100 Billion Market Cap

Crypto News

Tether USDT Hit Historic $100 Billion Market Cap

Bitcoin Mining Stocks Crash Despite BTC Rally

Crypto News

Bitcoin Mining Stocks Crash Despite BTC Rally

Nigeria Demands $10 Billion From Binance After Naira Drop

Crypto News

Nigeria Demands $10 Billion From Binance After Naira...

Bitcoin ETFs Record $680 Million All-time High

Crypto News

Bitcoin ETFs Record $680 Million All-time High

Don’t miss any crypto news

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

By sharing your email, you consent to receiving BITmarket’s newsletter. Read how we process your data in our Privacy policy

You’ve made us very happy 😊

Subscribe to our Newsletters - the best way to stay informed about the crypto world. No spam. You can unsubscribe anytime.

Something went wrong 😔

If your problem persists please try contact our support