Digital asset bank Custodia files an appeal after court ruling

Custodia, a digital asset bank, is appealing after a judge's ruling in a U.S. court in Wyoming found that the bank is not entitled to a master account in the Federal Reserve System. Custodia has been trying to get that authority for years, but Judge Scott Skafdahl said in his March judgment that the Federal Reserve Bank has the discretion to decide whether to grant a master account. Custodia's attorneys filed a notice of appeal in U.S. District Court in Wyoming last Friday, marking the latest development in the years-long dispute. Custodia founder Caitlin Long applied to the Federal Reserve Bank of Kansas City for a master account in 2020, but it was denied. The bank then sued the Federal Reserve Board and the Federal Reserve Bank of Kansas City. Custodia, a special-purpose depository regulated by Wyoming law, cannot lend "customer fiat deposits" and must keep 100 per cent of those deposits, although it can take deposits and provide services such as escrow.