Custodia | Crypto

The proposed system aims to connect traditional banking infrastructure with blockchain-based payment networks with banks retaining customer deposits. Custodia and Vantage Bank have proposed a token that automatically switches between a bank deposit and a stablecoin as it moves between participating banks and external users. According to a white paper shared with Cointelegraph on Thursday, the token would operate as a deposit issued by a participating bank when held within a banking consortium and as a stablecoin backed by cash and short-term Treasurys when transferred outside the so-called Hazel network. The companies said the system has been running on Ethereum (ETH) since March and is being tested by participating banks ahead of a broader rollout planned for later this year. The platform is designed to support tokenized deposits, stablecoins and other blockchain-based financial assets through a shared banking infrastructure. Read more

Custodia Bank is asking the full Tenth Circuit Court of Appeals to review the US Fed’s decision denying it a master account, which would allow it to process payments directly. Custodia Bank, a crypto‑focused bank founded by Bitcoin advocate Caitlin Long, is doubling down on efforts to obtain a master account at the US Federal Reserve by filing a new petition in the United States Court of Appeals for the Tenth Circuit. On Monday, the Wyoming-chartered company filed a petition asking all active judges of the Tenth Circuit to reconsider its October decision upholding the Federal Reserve’s denial of a master account for Custodia. Through the petition, formally termed a “rehearing en banc,” Custodia argued that the panel had misread the Monetary Control Act, which it asserts entitles any eligible bank to a master account, and in doing so, undermines state banking authority. Read more