Hi, user_no_name

Trade now

Deposit

Logout
Login Sign Up
EN

Language

English English (Global)

English English (EU)

English English (UK)

English English (AU)

English English (ZA)

English English (St. Vincent)

Deutsch German

Español Spanish (Latam)

Español Spanish (Spain)

Français French

Dansk Danish

Italiano Italian

Nederlands Dutch

العربية Arabic

Svenka Swedish

Tiếng việt Vietnamese

Bahasa Melayu Malay

ภาษาไทย Thai

繁體中文 Traditional Chinese

简体中文 Simplified Chinese

Tagalog Tagalog

தமிழ் Tamil

हिन्दी Hindi

Português Portuguese

Bahasa Indonesia Indonesian

한국어 Korean

English English (BVI)
Markets

Products

Forex

Shares

Commodities

Indices

Crypto

ETFs

Bonds
Trading

Trading Platforms

Web Platform

App

MT4

MT5

Trading Central

Trading Tools

CFD Trading Calculator

Forex Margin Calculator

Commodities Profit Calculator

Forex Profit Calculator

Economic Calendar

Quotes

Forex Heatmap

Trading Info

CFD Trading

CFD Asset List

Trading Conditions

Trading Hours

Expiration Dates

Upcoming Trading Holidays

Weekly Expiration Rollover

Trading Features

Depth of Market
Learn

Learn to Trade

Glossary

Education Centre

Trading Basics

Video library

News & Analysis

News

Academy

Trader's clinic

Webinars

US Nonfarm Payrolls
Promo

Welcome Bonus

Reward Hub

marketsClub

Loyal Bonus

Referral Bonus

Swap-free Accounts
Partnership

Affiliation

IB
About

About Markets.com

Why markets.com

Global Offering

Our Group

Careers

Awards and Media

Help Support

FAQ

Help Centre

Contact Support

Complaints

Data & Security

Safety Online

Cookie Disclosure

Legal Pack

Legal Documents

Language

US Court Denies Custodia Bank's Appeal for Federal Reserve Master Account

Friday Oct 31 2025 19:20

1 min

Table of Contents

1. Case Summary: Custodia Bank vs. Federal Reserve
1.1 Details of the Court's Ruling
1.2 The Significance of a Master Account
1.3 Custodia's Response and Next Steps
1.4 Custodia's Background and History

Case Summary: Custodia Bank vs. Federal Reserve

A US appellate court has sided with the Federal Reserve, rejecting Custodia Bank's appeal for a master account. This decision reinforces the Fed's stance on the risks associated with crypto-focused financial institutions.

Details of the Court's Ruling

In a ruling delivered on Friday by the US Court of Appeals for the Tenth Circuit, the court affirmed a previous decision by a lower court in the District of Wyoming. Custodia Bank filed the appeal in April 2024 after the lower court had already ruled against granting them a Federal Reserve master account. This denial represents the latest challenge for the bank, which initially submitted its application in October 2020.

The Significance of a Master Account

Securing a Federal Reserve master account would have provided Custodia Bank with direct access to the US government's payments network and authorized financial institutions. Custodia initially sought access through the Federal Reserve Bank of Kansas City. However, the Fed rejected their application in 2023, citing potential risks that were deemed "inconsistent with safe and sound banking practices" due to the bank's focus on digital assets.

Custodia's Response and Next Steps

Following the release of the court's decision, Custodia stated on X that they are "actively considering" petitioning the appellate court for a rehearing. They noted a "strong dissent" within the court, which raised "serious Constitutional questions about the Federal Reserve." This dissent was authored by a judge involved in a similar case in the Ninth Circuit.

Custodia's Background and History

Founded in Wyoming by Caitlin Long under a state-level regulatory environment conducive to blockchain innovation, Avanti was among the pioneering "blockchain banks." The company rebranded as Custodia in 2022. Cointelegraph has reached out to Long for comments.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Written by:

Noah Lee

Latest news

Thursday, 6 August 2026

Indices

Gold Price Today, August 7: XAU/USD Holds Near $4,250 Before US Jobs Report

Thursday, 6 August 2026

Indices

USD/JPY Rises 0.4% to 158.40 as US Jobs Report Tests Yen Recovery

Thursday, 6 August 2026

Indices

Western Digital Stock Falls 13% and Sandisk Slides 7% as Guidance Disappoints

Thursday, 6 August 2026

Indices

SpaceX Stock Jumps 6% on $100 Billion Unlock Day as Earlier Selloff Absorbs Supply Shock

Thursday, 6 August 2026

Indices

Alphabet Stock Falls as AI Leadership Changes and $25 Billion Bond Sale Raise Spending Questions

Thursday, 6 August 2026

Indices

Tesla Stock Falls as $16.8 Billion Terafab Plan Raises Funding Questions

Thursday, 6 August 2026

Indices

AVGO Stock News Today: Broadcom Gains as AI Chip Momentum and September Earnings Move Into Focus

Thursday, 6 August 2026

Indices

US Nonfarm Payrolls Preview: Hiring Slows While Layoffs Stay Near Historic Lows

Thursday, 6 August 2026

Indices

Iran’s Strait of Hormuz Bill Would Bar US and Israeli Ships as Washington Rejects Any Restrictions

Wednesday, 5 August 2026

Indices

Gold Price Today, August 6: XAU/USD Hits Seven-Week High Above $4,290

See all news

US Court Denies Custodia Bank's Appeal for Federal Reserve Master Account

Case Summary: Custodia Bank vs. Federal Reserve

Details of the Court's Ruling

The Significance of a Master Account

Custodia's Response and Next Steps

Custodia's Background and History

Latest news

Cookies

Strictly Necessary

Functionality Cookies

Targeting Cookies