Crypto-friendly Custodia Bank achieves SOC 2 Type II compliance certification

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Custodia Bank, a digital asset-focused financial institution based in Wyoming, has reached an important step in enhancing its security measures by being recognized as a bank that adheres to the System and Organization Controls 2 (SOC 2) standards.

On January 8th, Custodia Bank disclosed that they had successfully obtained the SOC 2 Type II certification, which builds upon their previous achievement of passing the Type I audit.

The SOC 2 (Service Organization Control) is a cybersecurity standards framework developed by the American Institute of Certified Public Accountants. This framework helps evaluate an organization’s security measures regarding their internal controls over data processing and storage. Essentially, it aims to ensure that technology companies can handle client data securely, which makes it a significant certification within the tech industry.

Established by cryptocurrency supporter and financier Caitlin Long, Custodia is a bank regulated by the state that specializes in banking, payment, and safekeeping services related to digital assets for commercial clients based in the United States.

In a rare occurrence among U.S. banks, Custodia has earned a SOC 2 certification, a standard not commonly pursued by many. However, as these certifications are considered the pinnacle of technology companies’ security measures, they are essential for catering to our most technologically advanced clients. Notably, Custodia has achieved both the Type I and Type II certifications, something we take great pride in.

As a crypto investor, I’m thrilled about Custodia Bank’s recent achievement of SOC 2 Type II certification. This accreditation underscores their unwavering commitment to data security in an industry where it matters most. It demonstrates that they prioritize the highest standards of security, ensuring not only the safety of my assets but also their availability and confidentiality.

In June 2022, Custodia filed a lawsuit against the Federal Reserve, voicing concerns about their application process for a master account with the Federal Reserve Bank of Kansas City.

Through a master account, banks can connect directly with the Federal Reserve, bypassing the need for an intervening bank. In March 2024, Custodia was unsuccessful in their initial court case, but they subsequently chose to file an appeal.

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2025-01-08 23:20