Custodia Bank Denied Federal Reserve System Membership

The U.S. Federal Reserve Board has denied Custodia Bank’s application for membership

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Custodia’s risk management framework was insufficient to address concerns regarding the heightened risks

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The decision comes nearly 18 months after Custodia formerly known as Avanti Bank

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Custodia is surprised and disappointed by the Board’s Action today

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In June 2022, Custodia filed suit against the Federal Reserve

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Custodia is a special purpose depository institution, chartered by the state of Wyoming

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That's firm's have novel business model and proposed focus on crypto-assets presented significant safety and soundness risks

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The Board also found that Custodia's risk management framework was insufficient

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