Custodia Bank Highlights Crypto Shift From Exchanges to Banks

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.

Bitcoin custody is shifting towards US banks due to the legal protections and institutional appeal they offer, as highlighted by Custodia Bank’s CEO in a recent X platform post.

This trend is largely driven by the need for asset segregation and bankruptcy protection, which specialized charters like Wyoming’s SPDI provide.

Both Custodia Bank and Kraken Bank are said to be spearheading this transformation. In a recent post, Custodia Bank CEO further elaborated on this shift, highlighting the preference for US banks in the custody of Bitcoin.

This preference is attributed to the legal protections offered by US banks, ensuring that assets are segregated and shielded from potential bankruptcy.

Wyoming’s SPDI bank charter, which anticipated this need, has established a framework that crypto-native banks like Custodia and Kraken are now utilizing.

Furthermore, Kraken also showcased its crypto custody services, which are designed specifically for institutional clients in the US, UK, and Australia. These services include segregated assets, advanced controls, and the highest level of security measures in the industry.

This shift in preference towards banks over traditional crypto exchanges for the secure holding of digital assets is evident and aligns with the institutional demand for greater safety and regulatory clarity.

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