On Friday, the Federal Reserve Board announced that it had denied the application by Custodia Bank to become a member of the Federal Reserve System. Custodia is a Wyoming state-chartered bank without FDIC insurance. The goal of the special purpose bank is to become a bridge between the digital assets sector and the U.S. dollar payments system.
Additionally, the Federal Reserve issued a policy statement proposing to extend crypto-asset restrictions to uninsured state chartered banks to put them on a level playing field with national banks and FDIC-insured banks.
All seven of the Federal Reserve Board members voted against providing Custodia with access to a master account.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
