Custodia Bank, a pioneering financial institution based in Wyoming that caters to the cryptocurrency community, has recently acquired the System and Organization Controls 2 (SOC 2) certification, elevating its status as a trusted and secure banking provider.
In a press release dated January 8, Custodia Bank revealed its successful attainment of the SOC 2 Type II certification, following its accomplishment of the Type I audit. This certification, awarded by the American Institute of Certified Public Accountants, is a testimony to the bank’s robust internal security controls.
SOC 2 is a rigorous cybersecurity compliance framework that assesses an organization’s capability to securely store and process client data. This certification is a coveted achievement for technology companies, demonstrating their commitment to data security.
Custodia Bank was founded by Bitcoin proponent and investor, Caitlin Long. As a state-chartered bank, it specializes in digital asset banking, payments, and custodial solutions for commercial clients across the United States.
In a statement, Long noted, “It is uncommon for U.S. banks to acquire SOC 2 certifications, like Custodia has done. Only a handful of banks seek them. However, as the ‘gold standard’ for security controls within the technology sector, SOC 2 Type II certifications are essential for serving the most technologically advanced clients. Custodia is proud to have secured both the Type I and Type II certifications.”
Custodia Bank has been striving to gain a foothold in the banking industry, despite the challenging regulatory landscape. In its announcement, the bank underscored that the SOC 2 Type II certification is a testament to its unwavering commitment to data security. It further underlines the bank’s dedication to the highest security standards, and its commitment to ensure the availability and confidentiality of data.
In June 2022, Custodia Bank took legal action against the Federal Reserve, citing grievances related to its application for a master account with the Federal Reserve Bank of Kansas City. A master account would grant Custodia direct access to the Federal Reserve, eliminating the need for an intermediary bank. While the initial lawsuit was ruled against Custodia in March 2024, the bank has since filed an appeal.
Custodia Bank’s recent SOC 2 certification is a significant step forward for the institution, and it sends a clear message to its clients and potential customers about its commitment to data security. As it continues to navigate the shifting landscape of banking regulations, this certification may well provide the bank with the edge it needs to thrive in the burgeoning field of digital asset banking.
