Custodia Bank Account, the self-custody wallet alternative for Bitcoiners

Introduction: The self custody alternative for cash/fiat and bitcoin

• I think an account at this bank can serve as an alternative to keeping all your dollars as stablecoins and self- custodying your Bitcoin in your own wallet.
• Custodia Bank is a US Bank in the state of Wyoming.
• Wyoming has passed many cryptocurrency friendly laws over the past couple of years, such as declaring bitcoin property.

Body

• One such law established the these rules for Custodia Bank
• • A Custody Bank doesn't lend the depositors money nor invest it. A Custody Bank just custodies the depositors funds, and Wyoming law states that these fubds are not assets belonging to the Bank, and are not liable to seizure in the event of a bankruptcy. This is important because in the bankruptcies of three major banks last year, depositors with large depositors found themselves no longer classified as depositors, but investors, and their funds could be seized and used by the courts to pay the creditors of the banks which failed. This historical occurrence severely undermined consumer confidence in banks and led to flight of customers from small banks, to large banks, perceived as. to big to fail.
• Next Custodia Bank applied for and was granted a license to custody Bitcoin for customers also. This is a very timely event because of the ever growing number of investors interested in putting small amounts of Bitcoin in their investment portfolio. But they must learn to self custody it or keep it on an exchange, and with the large number of cryptocurrency exchange failures in 2023 that is not an attractive option. So being able to trust a bank to custody your bitcoin is the natural thing to do in traditional finance society, so Custodias move is a brilliant one.
  depositors of regular banks are insured by FDIC

Summary

• I think the structure of Custodia Bank as a business which provides regular banking servbices like checking accounts and savings accounts, but specifically doesn't make money loaning out or investing your money, is inherently safer for depositors to protect them from bad loans or bad investments a regular bank may make.
• Plus the law in Wyoming speifiying that customer deposits are not bank assets and must be returned immediately to the customers in an event of bank failure is further reassuring.
• Lastly, Custodias smart move to apply for a Bitcoin custody license further sets it aprt from the competition by providing a place for investors who are not knowledgeable enough to safely self custody their Bitcoin a safe place to hold it as a longterm or short term investment.
• I think this makes Custodia Accounts ultimate self custody wallet since the bank by law must return all your deposits to you on demand.

Last Words

• What do you think?
• Do you want to open an account with Custodia Bank?
• Let me know in the comments?
• I also wonder if Custodia will next partner with Coinbase or some other cryptocurrency exchange so Custodia can become a one stop shop, where customers can buy cryptocurrency and store it in their bank account.