Crypto Bank Custodia Sues the Fed Over 19 Month Delay on Account Approval

Crypto bank Custodia sues the Fed over 19 month delay on account approval. Custodia wants to compel the Federal Reserve Board and its Kansas City branch to approve its application for a Fed master account within 30 days. Custodia, formerly known as Avanti was one of the first Special Purpose Depository Institutions (SPDIs) also known as “blockchain banks” made under a Wyoming regulatory framework. Custodia submitted an application for a Federal Reserve master account 19 months ago in October 2020. The account would allow Custodia to access the Federal Reserves payment systems without using a third party bank.