Custodia Bank has not yet launched its Bitcoin custody service.
Custodia Bank is currently not offering its Bitcoin custody service.
During a Bitcoin 2023 panel, prominent figures such as Caitlin Long, the CEO of Custodia Bank, and Dylan LeClair, the Head of Market Research at Bitcoin Magazine, among others, made appearances. Caitlin Long specifically shared that Custodia Bank has plans to launch a Bitcoin custody service before the phenomenon of “hyperbitcoinization” takes place.
“Caitlin Long also added that the Bitcoin custody service offered by Custodia Bank aims to provide secure storage solutions for Bitcoin holdings, catering to the needs of institutional and individual investors. She emphasized the importance of robust custody solutions in the evolving landscape of digital assets, highlighting Custodia Bank’s commitment to meeting the growing demand for reliable and trusted Bitcoin storage services”
In April, Custodia Bank, which is one of Wyoming’s Special Purpose Depository Institutions (SPDIs), issued a two-month notice to its customers indicating their plan to launch bitcoin custody services. As part of their process, Custodia Bank follows a practice of providing advance notice before commencing custody services for any digital asset. This allows their users to be informed and prepared for the upcoming launch of bitcoin custody services.
More Details
After Custodia Bank filed a lawsuit against the Federal Reserve (FED), the declaration of launching the bitcoin custody service began. The approval process will involve the Fedwire network, which handles a significant number of transactions annually. In 2022 alone, the network processed transfers totaling $1 quadrillion.
However, the crypto bank expedited the application process within a week to address what they believed was an unjustifiable delay of 19 weeks by the FED. This prompted the bank to resort to legal actions. During this time, Caitlin Long criticized the FED for its actions during the bank collapses that occurred in March. She further stated:
“In his speech against cryptocurrencies, Michael Barr, the head of supervision at the Fed, proudly mentioned that banks supervised by the Fed do not experience bank runs due to the prudential supervision they receive. This statement was made while the run on the Silicon Valley bank was taking place.”
The CEO of Custodian Bank, who is a strong supporter of Bitcoin, mentioned that she founded the bank with a deep belief in Bitcoin’s potential. However, she also acknowledged that the world is not yet prepared for the widespread adoption of Bitcoin, known as ‘hyperbitcoinization.’
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
