Judge Rules Against Digital Asset Bank Custodia’s Bid for Federal Reserve Master Account
Digital asset bank Custodia Bank has been denied a U.S. Federal Reserve master account by the United States District Court for the District of Wyoming.
The court ruling dismissed Custodia’s plea for a declaratory judgment, but the bank remains determined and is exploring all available options.
“We are reviewing the court’s decision and all of our options, including appeal,” a spokesperson for Custodia Bank stated, indicating the bank’s intent to continue pursuing its case.
In the court filing on March 29, Judge Scott Skavdahl rejected Custodia’s request for a Federal Reserve master account.
Such an account, often referred to as a “bank account for banks,” grants financial institutions access to the Federal Reserve’s payment systems.
Custodia argued that without a master account, it would be at a disadvantage compared to other banking institutions in offering custodial services for crypto-assets.
The lack of a master account would relegate Custodia to dependency on and compliance with an intermediary bank, making it a “second-class citizen,” according to the bank’s claim.
Read more on cryptonews.com
