The Custodia Bank sued the Central Bank in 2022 because of a delayed decision on their master account application. A judge ruled that the Federal Reserve is not required to provide the bank with access to its master account. Judge Scott Skavdahl stated that Federal Reserve Banks can grant master accounts, but Custodia did not receive approval for theirs. The bank argued that every depository institution under state law should be entitled to a master account, but the court dismissed the claim. Custodia accused the Fed of violating the Administrative Procedures Act, but the court rejected this claim as well. Custodia's application for a master account was filed with the Kansas City Fed in 2020 and was denied in January 2023. The bank is governed by Wyoming law as a special purpose depository institution.
**Custodia Bank Loses Bid for Federal Reserve Master Account**
by Giorgi Kostiuk
2 years ago
Other news
XRP Community Speculates on Price Surge After Banking Approval
The XRP community is buzzing with speculation that Ripple's banking approval could lead to unprecedented price levels for XRP.
RealFi and Shopify Collaborate on XRP Ledger Payment Rewards Application
RealFi Payment Solutions has partnered with Shopify to create a payment rewards application powered by the XRP Ledger.
US-Iran War Escalates with New Strikes
The US-Iran war has escalated with fresh strikes from both sides, dampening hopes for a peace deal. The US military shot down four Iranian drones and attacked a ground control station in Bandar Abbas, while Iran retaliated by striking an American airbase in Kuwait. This escalation has led to a significant decline in Bitcoin's price.
Charles Hoskinson Shifts Focus to Cardano Following Clinic Closure
Charles Hoskinson announced the closure of his family-backed medical clinic in Wyoming, emphasizing a shift in focus towards Cardano and other crypto projects.
Orbital Partners with Banking Circle to Enhance Stablecoin Settlement in Europe
Orbital partners with Banking Circle to enhance stablecoin settlement and multicurrency payment capabilities across Europe.
Strive Asset Management Introduces Innovative Bitcoin-Backed Securities
Strive Asset Management has launched SATA preferred shares, the first listed US security to pay daily dividends, with a 13% annualized rate, aiming to reshape perceptions of money and credit.
Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter