Custodia Bank, a crypto-friendly Wyoming-based bank, has achieved a major milestone in its security controls by obtaining certification as a System and Organization Controls 2 compliant bank.
On Jan. 8, Custodia Bank announced it had achieved the SOC 2 Type II, adding to its earlier milestone of completing the Type I audit.
SOC 2 is a cybersecurity compliance framework by the American Institute of Certified Public Accountants that provides an audit and report on an organization’s internal security controls. The main goal is to assess a service provider’s capacity to safely store and process client data. It’s a major certification for technology companies.
Founded by Bitcoin advocate and investor Caitlin Long, Custodia is a state-chartered bank focused on digital asset banking, payments, and custody solutions for U.S. commercial customers.
“It is unusual for banks in the U.S. to obtain SOC 2 certifications, which Custodia has done, and only a small number of U.S. banks typically seek them,” Custodia chief executive officer Caitlin Long said. “But as the ‘gold standard’ for technology companies’ security controls, SOC 2 Type II certifications are critical for serving the most tech-forward clients. Custodia is proud to have obtained both the Type I and Type II certifications.”
Custodia Bank, which has battled for traction in the banking space despite a challenging regulatory environment, said in its announcement that the SOC 2 Type II certification showcases its commitment to data security. The certification reflects the bank’s dedication to the highest security standards, as well as its focus on availability and confidentiality.
Custodia sued the Federal Reserve in June 2022 over complaints related to its application for a master account with the Federal Reserve Bank of Kansas City.
A master account allows banks direct access to the Federal Reserve, rather than going through an intermediary bank. Custodia lost the initial lawsuit in March 2024, but filed an appeal.
