Crypto-Friendly Custodia Bank Faces Setback As Fed Denies Application for Supervision
The world of cryptocurrency took a hit recently when Custodia Bank’s bid to acquire the first-ever crypto-focused banking charter was denied by the Federal Reserve. Custodia was seeking the revolutionary move in order to better serve its customers who transact in digital currency.
Custodia: The Bank of Crypto
Custodia Bank had been on the cutting edge of the crypto world, as the first institution to accept digital currency deposits in the United States. The bank was keen on taking its services even further, applying for a national banking charter in order to fully seize the opportunities available to them in the crypto realm.
A Setback for an Innovative Vision
Unfortunately, the Federal Reserve denied Custodia’s application, leaving the world of cryptocurrency worse off than before. This means that would-be customers of Custodia may have to look elsewhere for a financial institution willing to adequately serve their needs as crypto users.
What Does This Mean for You?
If you’re a crypto warrior, you know that Custodia Bank has long been a leader in the world of digital currency. The denial of their application for supervision means that you may have to find another bank that better serves your needs as a crypto user.
Where to Go From Here
While this snag in the bank’s plan is certainly an inconvenience, the technology-forward folks at Custodia are sure to come up with something innovative in the future. Until then, here are some ways for crypto-lovers to keep their funds safe:
- Find another crypto-friendly bank: There are plenty of other banks and financial institutions that offer services to bitcoin and altcoin users, so do some research and find the one that best suits your needs.
- Use a cryptocurrency wallet: If you’d rather not trust a bank to hold your digital funds, you can keep them in a crypto wallet, which is the equivalent of a traditional bank account but is not regulated.
- Do your due diligence: Before entrusting any bank or wallet with your crypto funds, make sure to do your research to ensure that they are reputable and secure.
Onward and Upward
Even though the Federal Reserve denied Custodia’s application for supervision, the crypto world can take comfort in knowing that the dream of a crypto-friendly bank lives on. Keep your eyes on Custodia, and get ready for their next big move when it comes around. Until then, keep your coins close, crypto warriors!
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