Custodia Appeals After Court Ruling That It Is Not Entitled to Federal Reserve System Master Accounts

Digital asset bank Custodia has appealed following a judge's ruling in a U.S. court in Wyoming that found the bank did not have the right to a master account with the Federal Reserve System.Custodia has been trying to gain that access for years, but Judge Scott Skavdahl said in a March ruling that the Federal Reserve Bank has discretion to grant master accounts.Custodia's attorneys filed a notice of appeal in U.S. District Court in Wyoming on Friday, marking the latest development in the years-long dispute.Custodia founder Caitlin Long applied for a master account with the Federal Reserve Bank of Kansas City in 2020, but was denied. The bank then sued the Federal Reserve Board and the Federal Reserve Bank of Kansas City.Custodia is a special-purpose depository institution regulated under Wyoming law, and while it can take deposits and provide services such as custodianship, it cannot lend "customer legal deposits" and must retain 100 percent of those deposits.