Fed Denies Membership Application for Cryptocurrency Bank Custodia
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Concerned about cryptocurrency risks The US Federal Reserve Board (FRB) announced on the 27th that it denied a membership application submitted by Custodia Bank, which provides banking services related to digital assets such as crypto assets (virtual currencies). It argued that Custodia’s business model and its crypto-focused operations pose significant risks to its safety and soundness. The Fed justified the denial because it didn’t meet the legal requirements. The company is a Wyoming licensed Special Purpose Depository (SPDI). Services include the operation of digital banks, the issuance of digital dollars, and custody. Custodia’s services aren’t covered by federal deposit insurance,
Ripple (XRP) continues to make big moves. At this point, Ripple has applied for a national bank license in the United States, following a similar move by stablecoin giant Circle. While this move was seen as a major development for Ripple, Fox Business reporter Eleanor Terrett drew attention to a…