Custodia appeals court ruling that it has no access to Federal Reserve main account

Custodia, a digital asset bank, has filed an appeal following a ruling by a judge in a U.S. Wyoming state court that found that banks do not have access to a master account with the Federal Reserve System. Custodia has been trying to gain that access for years, but Judge Scott Skavdal said in a March ruling that the Federal Reserve Bank has discretion to grant a master account. Custodia's lawyers filed a notice of appeal in the U.S. District Court for the District of Wyoming last Friday, marking the latest development in a years-long dispute. Custodia founder Caitlin Long applied for a master account with the Federal Reserve Bank of Kansas City in 2020 but was rejected. The bank then sued the Federal Reserve Board and the Federal Reserve Bank of Kansas City. Custodia is a special purpose depository institution regulated under Wyoming law, and while it can receive deposits and provide services such as custody, it cannot lend "customer legal deposits" and must retain 100% of those deposits.