Digital asset bank custodiabank is petitioning a U.S. court over the KansasCityFed's BNYMellon's crypto custody approval. By thesamreynolds
Digital assets bank Custodia Bank has filed a lawsuit in a U.S. court in Wyoming over what it calls"favoritism" and a"lack of respect" by the Board of Directors of the Kansas City Fed in allowing BNY Mellon to engage in crypto custody but not granting Custodia approval for a Fed master account.
By virtue of being a well-established bank, BNY would have a master account with the Fed. Without a master account, institutions like Custodia would need to use an intermediary bank and be subject to that bank's rules, regulations, and fee structure. In June, Custodia filed suit against the Fed alleging that the U.S.
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