Custodia Bank

THE BANKS ARE COMING TO BITCOIN! Attention banks that want to enter #bitcoin & #crypto custody in the U.S., now that the SEC is granting "exceptions" to #SAB121 for "several large banks" (per Bloomberg). Here are thoughts on the buy vs build vs rent decision for banks looking to enter: https://lnkd.in/guzfujVe

#Bitcoin2024 is next week & the Custodia Bank team is excited to join Bitcoiners there! Make sure to see Caitlin Long's two talks & catch up with our onsite team. Please see https://lnkd.in/gj-s62s5 or contact us at info@custodiabank.com. (Material is for informational purposes only)

Recently, a wave of companies has been adding #bitcoin to their balance sheets. If your business is among them, trust our robust legal protections and custody your #bitcoin with Custodia Bank. Your Bitcoin will be stored in a segregated wallet with the protections of #Wyoming’s bailment laws.  Our white paper offers more information on the segregated wallet structure of Custodia’s #bitcoin custody service. The material contained herein is for informational purposes only.  Please see https://lnkd.in/gj-s62s5 for more information.

Institutional investors are among the customers that trust Custodia Bank to provide a safe and secure #bitcoin custody service. In addition to bank-level security, they value #Wyoming’s bitcoin-friendly laws, our bank regulatory regime, and address-level asset segregation. Get started here: https://lnkd.in/gj-s62s5 The material contained herein is for informational purposes only. 

Unlike other #Bitcoin custodians, Custodia Bank uses a segregated custody model that allows you to validate your address balances **on-chain.** Did you also know that Custodia's #Bitcoin custody setup allows you to manage your individual #UTXOs? Currently, you can select which UTXOs you want to protect. We’re working on a full set of #Bitcoin #UTXO management features, making UTXO hygiene even easier. This is especially useful in high fee environments & for smaller UTXOs (eg, mining rewards as part of a pool payout). Between the #halving and #Runes launch, #Bitcoin network fees are back to all time highs and it’s critical to have a strategy to manage your #UTXOs and reduce fee expenditure. The material contained herein is for informational purposes only. Please see https://lnkd.in/gj-s62s5 for more information!

Hear our CEO, Caitlin Long, tell CNBC why Custodia Bank's business is still going strong, why it's not giving up on a Fed master account, and how its business model is designed to remove #Herstatt risk from the traditional banking system. 👇 https://lnkd.in/giCkgUN4

Last week, we caught up with Preston Pysh to discuss Custodia Bank's segregated #Bitcoin custody service. Check it out! Here’s what we we covered: 2:40 Custody of Bitcoin ETFs 3:30 Bailment discussion, what makes Custodia (as a bank) different 7:45 A theory about why ETFs concentrate custody at Coinbase (for now)  9:20 Why Custodia uses segregated custody & custodies UTXOs 11:00 Why ETFs aren’t using Custodia 12:56 6102 Attack & Fed vs. State Regulatory Framework for Custodia 17:13 Custodia’s lawsuit - Preston’s thoughts 25:20 Technology & our custody product 27:50 Plans for expansion 28:30 Trading: why Custodia believes in segregation of custody from exchanges 31:00 Potential for BTC lending through an outside lender (Custodia isn't the lender) 32:00 What we are excited about in the next few years (Layer 2s, Lightning) 33:00 Approved at charter for ability to do stablecoin 33:20 Cantor Fitzgerald as custodian of Tether’s T-bills 34:30 Stablecoins - risk (“speed of light” vs. legacy “Oregon Trail” speed) 37:00 Wes’s perspective on stablecoins - fractional reserve vs. full reserve 38:00 TGA draw down - Caitlin’s take on BTFP ending in March 42:00 2024 election impact on Fed’s strategy 45:00 The consequences of “bad money” crowding out “good money” 47:11 The tokenization of equities and the digitalization of corporate stock, Caitlin’s background working with the State of Delaware in 2016-17 52:38 Inefficiency in the market and potential issues with trading Bitcoin ETFs 56:45 How to identify when ETFs might be having problems 59:10 Looking forward to a potential world where ETF holders might someday redeem shares for real Bitcoin held in custody by Custodia https://lnkd.in/g8rB4cVb

Happy 2024! Last year, did you read our whitepaper about our Bitcoin custody product and the segregated vs. the omnibus model? https://lnkd.in/gtyW74pv Most of the industry offers omnibus custody. Most also use the legal framework of a trust. Trust companies and other non-banks may end up in federal bankruptcy court if they fail. In bankruptcy court, your business might not recover all its assets because they might be subject to preferences, delays and the uncertainties of bankruptcy. Custodia offers segregated custody and is a bank, not a trust company. This means that in the event of bankruptcy, your assets remain legally yours. To make this easier to understand, let's use a metaphor: think of a forest, then imagine a single tree. In bankruptcy, the court treats that forest as harvested lumber. Even if you owned one tree or several, it's difficult to know which boards came from your tree vs others. Our custody model is like a single tree. It's easy to know which leaves and branches belong to whom because it's still there, standing strong. There's no need to process that tree into lumber because you can simply count the leaves. If you're interested in learning more about Bitcoin custody, banking services, or money market funds, please fill out this form and we'll get back to you. https://lnkd.in/gj-s62s5 We'd love to learn more about how we can help your business!

📈 Custodia Bank engineering stats: Google's general test coverage guidelines: 🎯 Acceptable: 60% 👏 Commendable: 75% 🌟 Exemplary: 90% Custodia's 2023 stats: 📈 New code this year: +101% 📊 Early '23 coverage: 87% 🚀 Coverage now: 90.5% 💪 Test coverage vs Google guidelines: EXEMPLARY

While most custodians provide customers with a pro rata share of an omnibus Bitcoin custody account, Custodia Bank provides customers with full segregation of Bitcoin. Custodia custodies #UTXOs! Here’s our whitepaper about segregated #Bitcoin custody:  https://lnkd.in/gtyW74pv