Custodia Bank, a crypto-friendly Wyoming-based bank, has reached a major milestone in its security controls by receiving System and Organizational Controls 2 compliant bank certification.
On January 8, Custodia Bank announced that it had achieved SOC 2 Type II, adding to the previous milestone of completing its Type I audit.
SOC 2 is a cybersecurity compliance framework developed by the American Institute of Certified Public Accountants that provides auditing and reporting on an organization’s internal security controls. The main purpose is to evaluate a service provider’s ability to securely store and process customer data. It is an important certificate for technology companies.
Founded by Bitcoin advocate and investor Caitlin Long, Custodia is a government-certified bank focused on digital asset banking, payments and custody solutions for U.S. business customers.
“It is unusual for banks in the U.S. to obtain SOC 2 certifications as Custodia does, and typically only a small number of U.S. banks seek these certifications,” said Custodia CEO Caitlin Long. “However, SOC 2 Type II certifications, the ‘gold standard’ for technology companies’ security controls, are critical to serving technology-forward customers. Custodia is proud to have received both Type I and Type II certifications.”
Struggling to gain traction in the banking space despite the challenging regulatory environment, Custodia Bank said in its announcement that its SOC 2 Type II certification demonstrates its commitment to data security. The certification reflects the bank’s commitment to the highest security standards as well as its emphasis on usability and confidentiality.
Custodia filed a lawsuit against the Federal Reserve in June 2022 over complaints regarding its main account application at the Federal Reserve Bank of Kansas City.
The main account allows banks to access the Federal Reserve directly rather than going through an intermediary bank. Custodia lost the first case in March 2024 but filed an appeal.