tl;dr
Custodia Bank's CEO highlighted the trend of Bitcoin custody moving to US banks due to asset segregation and bankruptcy protection offered by specialized charters like Wyoming's SPDI. Custodia and Kraken Bank are leading this shift, emphasizing legal protections and superior security through asset s...
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As Bitcoin custody moves to US banks, the focus on legal protections and security is driving this shift. Custodia Bank and Kraken Bank are leading the transformation, capitalizing on asset segregation and bankruptcy protection offered by specialized charters like Wyoming's SPDI. With emphasis on compliance, trust, and cutting-edge controls, institutional clients are increasingly trusting banks over traditional crypto exchanges for securely holding digital assets.
Custodia Bank's CEO highlighted the trend of Bitcoin custody moving to US banks due to asset segregation and bankruptcy protection offered by specialized charters like Wyoming's SPDI. Custodia and Kraken Bank are leading this shift, emphasizing legal protections and superior security through asset segregation and bankruptcy remoteness. Wyoming's SPDI bank charter and Kraken's tailored crypto custody services for institutional clients in the US, UK, and Australia support this trend. The focus on legal protections, compliance, and trust, along with the emphasis on asset segregation and cutting-edge controls, reflects a growing trust in banks over traditional crypto exchanges for securely holding digital assets, especially among institutional investors.
In a recent post on the X platform, Custodia Bank’s CEO has spotlighted the growing trend of Bitcoin custody moving to US banks. This shift is driven by the need for asset segregation and bankruptcy protection, which specialized charters like Wyoming’s SPDI offer. Custodia Bank and Kraken Bank claim to lead the transformation of Bitcoin custody. Custodia Bank CEO, in a recent post, emphasized that US banks are becoming preferred for Bitcoin custody due to legal protections. Meanwhile, these banks provide superior security by segregating assets and ensuring bankruptcy remoteness. Wyoming’s SPDI bank charter anticipated this need, setting up a framework that crypto-native banks like Custodia and Kraken now utilize. In addition, Kraken also highlighted its crypto custody services tailored for institutional clients in the US, UK, and Australia. They offer segregated assets, advanced controls, and industry-leading security measures.
Custodia Bank’s CEO pointed out that the legal protections offered by these specialized bank charters make them an attractive option. This shift is not just about security but also about compliance and trust. Institutions require robust legal frameworks to ensure their investments are safe and accessible. The state-chartered banks in Wyoming are equipped to meet these demands with their cutting-edge regulatory standards. Besides, Kraken’s announcement of its qualified crypto custody solution further underscores this trend. Meanwhile, they provide an institutional-grade custody service with segregated assets and state-of-the-art controls. This service appeals to clients in the US, UK, and Australia, offering them a regulated and secure way to manage their cryptocurrency assets.