• The U.S Federal Reserve has rejected Custodia Bank’s membership application due to safety and soundness risks associated with their crypto-asset operations.
• Custodia CEO, Caitlin Long, expressed surprise and disappointment at the Board’s action.
• The bank had been waiting 18 months for the Federal Reserve Board’s response to its application to become a member.

The U.S Federal Reserve Board has rejected Custodia Bank’s application for membership in the Federal Reserve System due to safety and soundness risks associated with their crypto-asset operations. Custodia, formerly known as Avanti Bank, had submitted their original paperwork in October 2022, and had been waiting almost 18 months for a response.

Custodia CEO, Caitlin Long, expressed surprise and disappointment at the Board’s action. The Federal Reserve advised Custodia 72 hours ago that it could either withdraw its membership application or see it denied, and the Fed denied it in record time. Moreover, Custodia pursued federal regulation vigorously, exceeding all rules applicable to conventional banks.

The Federal Reserve Board stated that Custodia’s „novel business model and proposed focus on crypto-assets presented significant safety and soundness risks“ and that the bank’s risk management system was inadequate. Consequently, the Fed was unable to approve the bank’s application due to the elevated risks associated with its anticipated crypto operations, such as the company’s capacity to minimize money laundering and terrorist financing issues.

The rejection of Custodia’s application means that the bank in Wyoming has not yet received a master account, which would allow it to settle transactions with other lenders using the Federal Reserve payments system. This could have large implications for Custodia’s ability to facilitate payments and access liquidity.

Custodia’s experience is a stark reminder of the difficulties that cryptocurrencies and crypto-related businesses can face when attempting to gain regulatory approval. The Federal Reserve Board’s decision highlights the need for crypto-related companies to ensure that their risk management systems are comprehensive and up to date.

• The global market cap is now $1.05 trillion, up 0.80% in the last 24 hours.
• The top trending coins of the day are Dogecoin (DOGE), Avalanche (AVAX), Terra Classic (LUNC), and Polygon (MATIC).
• DOGE and AVAX are currently trading at $0.08983 and $20.37 respectively, and have seen an increase of 4.97% and 13.01% in the last 24 hours respectively.

The cryptocurrency market has seen a major downturn in the last year, with the global market cap falling below one trillion dollars. However, with new projects and updates in the blockchain sector, the market has recently seen a major uptrend, with the global market cap now reaching $1.05 trillion, up 0.80% in the last 24 hours. These positive changes in the market have allowed for some coins to start performing well, with the top trending coins of the day being Dogecoin (DOGE), Avalanche (AVAX), Terra Classic (LUNC), and Polygon (MATIC).

Dogecoin (DOGE) is a meme coin that has seen a resurgence in its popularity, with the coin currently trading at $0.08983, and having seen an increase of 4.97% in the last 24 hours. There are 132 billion Dogecoins in circulation, with a market cap of $11 billion and a 24h trading volume of $641.84 million. Dogecoin has experienced a 54.27% increase in the last 24 hours.

Avalanche (AVAX) is a blockchain project that utilizes smart contracts like Ethereum and ensures near-instant transaction completion. AVAX is ranked 14 with a price of $20.37 and an increase of 13.01% at the time of writing. With a market cap of $6 billion and a 24h trading volume of $875.50 million, there are 314 million AVAX in circulation.

Terra Classic (LUNC) is a proof-of-stake blockchain protocol that utilizes a hybrid consensus algorithm to ensure scalability and security. It is currently trading at $2.87, with a 24-hour trading volume of $3.09 million. There are 6.3 billion LUNC in circulation, with a market cap of $18 million.

Lastly, Polygon (MATIC) is a Layer 2 scaling solution that enables Ethereum-compatible applications to scale and operate faster. MATIC is currently trading at $1.44, with a 24-hour trading volume of $2.19 billion. There are 12.9 million MATIC in circulation, with a market cap of $18.6 billion.

Overall, the cryptocurrency market has seen a major uptrend in the last few days, with the global market cap now reaching $1.05 trillion, up 0.80% in the last 24 hours. This has allowed for some coins to start performing well, with the top trending coins of the day being Dogecoin (DOGE), Avalanche (AVAX), Terra Classic (LUNC), and Polygon (MATIC). All four of these coins have seen an increase in their prices, with Dogecoin and Avalanche seeing the highest percentage increase in the last 24 hours. As the market continues to grow, we can look forward to more coins performing well in the future.