Bloomberg Law
June 7, 2022, 8:47 PM

Crypto Bank Custodia Sues Fed For Access to Central Bank Funding

Evan Weinberger
Evan Weinberger

The Federal Reserve’s Board of Governors and the Kansas City Fed have been improperly sitting on a Wyoming crypto bank’s application for direct access to the central bank, a new lawsuit says.

Custodia Bank Inc. asked the U.S. District Court for the District of Wyoming on Tuesday to force the Fed and the Federal Reserve Bank of Kansas City to quickly consider its application for a Federal Reserve master account. A master account gives a financial institution direct access to central bank funding and its payments system to settle transactions—and by extension, U.S. dollars.

Custodia Bank said its application has ...

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