Custodia Bank Is, Once Again, Asking For A Federal Reserve Master Account

On December 12, 2022, Custodia Bank ("Custodia") – a state-chartered, digital asset-focused bank based in Wyoming – was  denied its motion for a default judgment in its battle with the Federal Reserve Board of Governors (the "Board") and the Federal Reserve Bank of Kansas City (the "KC Fed") over its pending application for a master account with the Federal Reserve (the "Fed"). Custodia sought a default judgment in its bid for a master account because, it claims, the Fed "continues to drag its heels and create new ways to frustrate Custdodia's efforts to obtain relief."

Custodia seeks to become a full-service bank, providing traditional and digital (i.e., crypto) asset custody and related services. Custodia holds a new Wyoming state bank charter called a Special Purpose Depository Institution ("SPDI"), which, according to Custodia's complaint, permits Custodia to provide custody services for digital assets and enables Custodia customers to use digital assets "to