Custodia Bank, a digital asset bank, faced rejection from the U.S. District Court for the District of Wyoming regarding its plea for a declaratory judgment and a master account with the Federal Reserve. Despite the setback, Custodia remains resilient, exploring all possibilities.

Judge Scott Skavdahl dismissed Custodia's endeavor to secure a master account with the Federal Reserve. This account, known as "a bank account for banks," enables financial institutions to utilize the Federal Reserve's payment systems.

Custodia expressed concerns about being reliant on an intermediate bank, asserting that it puts them at a disadvantage compared to other financial entities and treats them as a secondary player due to the absence of a master account for holding crypto-assets.

The court upheld the decision to deny Custodia the request for the Federal Reserve Bank of Kansas City's judgment reversal and dismissed Custodia's writ of mandamus that demanded FRBKC to furnish its master account.

Custodia's application for a master account with the Federal Reserve in October 2020 aimed to leverage the Fedwire network, which facilitated over 193 million transactions in 2023. Nonetheless, the Federal Reserve rejected Custodia's bid in January 2023, citing the inconsistency of the company's crypto activities with legal requisites.