Custodia Bank Highlights Bitcoin Custody Shifting To US Banks
In a recent post on the X platform, Custodia Bank’s CEO has spotlighted the growing trend of Bitcoin custody moving to US banks. This shift is driven by the need for asset segregation and bankruptcy protection, which specialized charters like Wyoming’s SPDI offer.
Custodia Bank Highlights Crypto Shift From Exchanges to Banks
Custodia Bank and Kraken Bank claim to lead the transformation of Bitcoin custody. Custodia Bank CEO, in a recent post, emphasized that US banks are becoming preferred for Bitcoin custody due to legal protections.
Meanwhile, these banks provide superior security by segregating assets and ensuring bankruptcy remoteness. Wyoming’s SPDI bank charter anticipated this need, setting up a framework that crypto-native banks like Custodia and Kraken now utilize.
In addition, Kraken also highlighted its crypto custody services tailored for institutional clients in the US, UK, and Australia. They offer segregated assets, advanced controls, and industry-leading security measures. This shift signifies a growing trust in banks over traditional crypto exchanges for holding digital assets securely.
Also Read: Japanese Crypto Giant Bitbank Prepares To Go Public
Legal Protections and Institutional Appeal
Custodia Bank’s CEO pointed out that the legal protections offered by these specialized bank charters make them an attractive option. This shift is not just about security but also about compliance and trust. Institutions require robust legal frameworks to ensure their investments are safe and accessible.
The state-chartered banks in Wyoming are equipped to meet these demands with their cutting-edge regulatory standards. Besides, Kraken’s announcement of its qualified crypto custody solution further underscores this trend.
Meanwhile, they provide an institutional-grade custody service with segregated assets and state-of-the-art controls. This service appeals to clients in the US, UK, and Australia, offering them a regulated and secure way to manage their cryptocurrency assets. The focus on asset segregation ensures that institutional clients’ assets are kept separate from the bank’s, adding an extra layer of security.
However, the emphasis on cutting-edge controls and industry-revered security highlights the bank’s commitment to maintaining the highest standards in crypto custody. This approach not only enhances security but also builds confidence among institutional investors, who prioritize both safety and regulatory compliance.
Also Read: Fidelity Launches Bitcoin ETP On London Stock Exchange
The post Custodia Bank Highlights Bitcoin Custody Shifting To US Banks appeared first on CoinGape.
