Caitlin Long argues that banks, as regulated custodians, are essential.
Custodia, as per the company’s Twitter, is now only accessible to businesses.
Custodia stated on Friday that it is now taking deposits in U.S. dollars from clients in certain locations and will shortly begin providing Bitcoin custody services. The crypto-friendly bank is now offering services for US government money market funds to its clients. CEO of Custodia, Caitlin Long argues that banks, as regulated custodians, are essential despite the industry’s penchant for regulatory theater.
For the same reasons that custodians in the securities business are banks rather than trust corporations or other non-bank organizations, she told, “Custodia has always believed the custodians in this industry will ultimately be banks.”
Custodia, as per the company’s Twitter, is now only accessible to businesses and is not yet live in all 50 states, as they are launching “slowly and carefully.”
Ongoing Legal Battle
The crypto-friendly bank’s approach is at odds with the crypto industry’s mantra of “moving fast and breaking things,” as described by Long, since “banks offer customers superior protections to non-banks.” A jubilant tone permeated today’s statement, which detailed their accomplishment of a long list of duties that are now obsolete.
Despite today’s victory, Custodia is still challenging the Federal Reserve over repeated rejection of the bank’s application to join FedWire due to serious threats to the system’s safety and soundness.
She is now in the midst of a legal battle with the Fed, who, in Long’s opinion, are trying to “turn tail and run” and “make an example” of Custodia. Eight other fintech firms, including four in the cryptocurrency industry, have had their attempts to open a master account with the Federal Reserve blocked.