US Court Rules in Favor of Federal Reserve, Rejects Custodia Bank’s Appeal
Custodia Bank argued that without a primary account it was a second-class citizen at the mercy of an intermediary bank. The U.S. District Court ruled against granting Custodia Bank a Federal Reserve master account and also denied the digital asset bank’s motion for declaratory judgment. However, Custodia reiterates that it is not backing down and is exploring all possible avenues.
In a lawsuit filed March 29 in U.S. District Court in Wyoming, Judge Scott Skavdahl dismissed Custody’s attempt to secure a Federal Reserve master account. The account, often called a “bank account,” makes it easier for financial institutions to access the Federal Reserve’s payment systems. Custodia claimed that without a master account, it would be unable to offer the same crypto asset custody services as other banking institutions, which would put the bank at a disadvantage….
