October 4th, 2022

Custodia Bank's comment letter to Basel Committee on Banking Supervision

Statement from Caitlin Long, founder/CEO and Rich Radnay, CTO of Custodia about Custodia’s comment letter to BIS regarding bank capital requirements for digital assets:

“It is a fact that legacy payment systems are already in competition with internet-native payment protocols, which enable their users to settle payments outside banking systems. By one estimate, to date approximately 3% of U.S. bank deposits have already migrated to the crypto industry – and that happened mostly before technology to scale these protocols arrived. But it has now arrived (it’s called the Lightning Network, which is a Bitcoin layer 2 protocol. Its throughput capacity roughly equals that of Visa, and payments made over Lightning cost virtually zero). This means regulations implemented today that block banks from adopting the new protocols, as they scale and as customers increasingly demand them – including to use them as payment rails for fiat currency – could turn out to have the unintended consequence of costing the banking industry dearly, as fintechs and broader technology companies simply go around banking systems to settle payments.”

Download the full comment letter

Interested parties and potential customers can contact Custodia at [email protected]. Press can contact Custodia at [email protected].

About Custodia: Custodia Bank, Inc. is a Wyoming bank formed to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets that can meet the strictest level of institutional custody standards. Custodia is required to fully comply with all applicable laws and regulations, including the Bank Secrecy Act and federal “know your customer,” anti-money laundering and related laws and regulations. Custodia will also comply with Wyoming’s special purpose depository institution and digital asset laws, which include requirements that fiat deposits be 100% reserved and that Custodia meet the strictest investor protections in the digital asset industry. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Custodia

NMLS # 2129447

In certain US states, Custodia Bank, Inc. operates as Custodia Digital Services, Inc.

[email protected]

Made in Wyoming

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