Custodia Bank requests reconsideration from the U.S. Federal Reserve

(Reuters) – Thursday’s decision by the U.S. Federal Reserve denied the request of crypto-focused Custodia Bank that the central bank reconsider its application for membership to the Federal Reserve System.

Custodia is based in Wyoming, and is chartered by the state as a special-purpose depository institution. The Fed stated previously that Custodia did not have a sufficient risk management system to deal with the crypto-related risks.

(Reporting from Hannah Lang in Washington; Editing done by Chris Reese