Custodia files petition with the U.S. Supreme Court to advance its 6-year master account dispute with the Federal Reserve

According to ChainCatcher, Custodia Bank has submitted a petition for review to the U.S. Supreme Court, seeking to clarify whether the presidents of regional Federal Reserve Banks have the authority to deny institutions access to master account services. Custodia Bank had applied multiple times for a Federal Reserve master account, but was rejected in 2023 due to significant security and soundness risks associated with its innovative business model and intended focus on crypto assets.

Custodia Bank subsequently appealed to the Tenth Circuit Court of Appeals, which in 2024 upheld the decision of the Federal Reserve Bank of Kansas City. The U.S. Supreme Court will decide in October whether to hear the case.