Fed deals double blow to crypto bank

Jackson Hole
Wyoming has developed a specialised legal structure for virtual asset providers
Shepard Humphries/Pixabay

The US Federal Reserve has turned a cold shoulder to Wyoming crypto firm Custodia, rejecting its bids to become a member bank and obtain a master account.

In a January 27 statement, the Federal Reserve Board said it had declined Custodia’s application to become a member bank. The board said the virtual assets service provider had “proposed to engage in novel and untested crypto activities that include issuing a crypto asset on open, public and/or decentralised networks”.

The board said

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