Custodia Bank argued that without a master account it is a “second-class citizen” at the mercy of an intermediary bank.
The United States district court has ruled against granting Custodia Bank a Federal Reserve master account and has also dismissed the digital asset bank's plea for a declaratory judgment. However, Custodia claims it is not backing down and is exploring all possible avenues.
“We are reviewing the Court’s decision and all of our options, including appeal,” a spokesperson for Custodia Bank told Cointelegraph.
In a March 29 filing submitted to the United States District Court of Wyoming, Judge Scott Skavdahl dismissed Custodia’s bid to secure a Federal Reserve master account. The account, often referred to as "a bank account for banks," facilitates financial institutions' access to the Federal Reserve’s payment systems.
