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About Custodia
Custodia is a Wyoming-chartered Special Purpose Depository Institution (SPDI) serving digital asset companies. Its core business includes custody, dollar-based payment settlement, and its own stablecoin, Avit, issued in partnership with Vantage Bank. The company positions itself as a compliant bridge between digital assets and the traditional U.S. dollar payment system.
Its core value proposition centers on the SPDI charter's requirement for 100% reserve backing and no lending, which addresses the market pain point of crypto firms being unable to access mainstream banking services. Without a Federal Reserve master account, crypto companies historically relied on correspondent banks, facing risks of sudden account termination and operational fragility.
Over the past six months, Custodia's legal battle with the Federal Reserve has reached a critical juncture. In March 2026, the Tenth Circuit Court of Appeals denied an en banc rehearing by a 7-3 vote. In July 2026, Custodia filed a petition for certiorari with the U.S. Supreme Court, challenging the Fed's discretionary power to deny master accounts. Notably, the Kansas City Fed granted Kraken a limited-purpose master account in March 2026, highlighting the inconsistency in the Fed's approach. Meanwhile, Custodia continues to develop its Avit stablecoin and may pursue a limited-purpose account through new administrative channels.
Custodia Bank, founded by Caitlin Long, has pursued a Federal Reserve master account since October 2020 to gain direct access to the U.S. payment system. In 2022, Custodia sued the Federal Reserve after its application was delayed and later denied, arguing that the Monetary Control Act mandates account access for eligible institutions. In October 2025, the Tenth Circuit Court of Appeals ruled against Custodia, affirming the Fed's discretion to deny master accounts, a decision that effectively ended its five-year legal battle. The court's ruling was a major setback for crypto banks seeking direct Fed access. Following the legal defeat, Custodia reportedly laid off additional employees to reduce costs, reflecting the financial strain of the prolonged litigation and operational challenges. Despite the setback, Custodia has continued to build compliance infrastructure, including its Avit stablecoin launched in 2025 in partnership with Vantage Bank, and has considered dual-track strategies such as applying for a limited-purpose master account through new administrative channels. The case has broader implications for state-chartered SPDI banks in Wyoming and the ability of crypto-native institutions to access the federal payment rail.
Caitlin Long (Founder & CEO) – 22-year Wall Street veteran, led Wyoming's blockchain legislation, previously at Morgan Stanley and Credit Suisse.
Mike Borges (CFO) – CPA, formerly Controller at Beneficial State Bank, joined Custodia in 2021.