Custodia Bank

What Custodia Bank does

Custodia Bank, Inc. is a Wyoming-chartered Special Purpose Depository Institution (SPDI), founded in 2020 as Avanti Financial Group and rebranded in February 2022, that provides digital asset banking, custody, and payment services to U.S. business customers including digital asset firms, fintechs, banks, corporate treasurers, trusts, pension funds, and startups. The company operates an API-based core banking platform offering Bitcoin and Ethereum custody under qualified custodian status, Fedwire/ACH/SWIFT payment services, and commercial U.S. dollar deposit accounts maintained at 100% reserves, with all customer deposits fully backed.

The company's flagship proprietary technology is Avit, America's first bank-issued stablecoin on a permissionless blockchain, representing tokenized U.S. dollar demand deposits issued on Ethereum mainnet via the ERC-20 standard and protected by U.S. Patent 11392906 (issued July 2022). Avit is deployed through the Hazel Network, a tokenized deposit and stablecoin infrastructure co-founded with Vantage Bank and integrated with Infinant's Interlace platform and Participate for loan participation automation; Hazel connects over 600 banks as of 2026 and enables dual-mode tokens that function as bank deposits within participating institutions and as GENIUS Act-compliant stablecoins when transferred externally. Additional products include geolocation-triggered programmable payments (demonstrated with TCU Neeley and the University of Wyoming) and on-chain loan participation workflows reducing institution-to-institution processing from days to minutes.

Custodia's revenue model combines transaction fees (Avit issuance/redemption, payment services) with subscription/recurring fees (digital asset custody, commercial deposit accounts), distributed B2B via direct platform access and a consortium channel through the Hazel Network. The bank holds licenses in 13 states as Custodia Bank, Inc. and operates as Custodia Digital Services, Inc. in 17 additional states; it is not recognized as a bank in Maryland and is not FDIC-insured. Five years of litigation seeking a Federal Reserve master account ended unsuccessfully in March 2026 when the 10th Circuit denied en banc rehearing, prompting a strategic pivot toward the Hazel consortium model.

Name

Custodia Bank

Legal name

Custodia Bank, Inc.

Website

https://custodiabank.com

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Custodia Bank is a Wyoming Special Purpose Depository Institution providing API-based digital asset custody, tokenized U.S. dollar deposits (Avit), and payment services to U.S. businesses including fintechs, banks, and corporate treasurers via its Hazel Network consortium.

Ownership category

akta.pro rank

Product category

Digital Asset Banking

NAICS

Depository Credit Intermediation (5221), Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)

SIC

State Commercial Banks (6022), Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Enterprise Payments & Tokenized Money (stablecoins, tokenized deposits, CBDC rails) (FSAPAIAJ)

akta.pro secondary industries

Institutional Qualified Custody (Banks/Trust Companies) (FSADACAA), Tokenized Bank Deposit & Commercial Bank Money Issuers (FSADADAB), Crypto Payments & Stablecoin Settlement Platforms (BPAMAFAL)

Keywords

• Digital asset custody
• Tokenized bank deposits
• Stablecoin issuance
• Commercial banking services
• Blockchain payment infrastructure

Headquarters

HQ city

Cheyenne

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Compliance, Infrastructure

Revenue model

1. Digital Asset Custody Services: Custody services for Bitcoin and Ethereum meeting strict institutional custody standards. As a bank and 'qualified custodian' under the Investment Advisers Act and SEC Custody Rule, Custodia provides secure digital asset custody for institutional clients.
2. Tokenized Deposit Issuance (Avit): Issuance and management of tokenized U.S. dollar deposits (Avit) on blockchain networks. Banks pay for blockchain infrastructure and tokenization services.
3. API-Based U.S. Dollar Payment Services: Fedwire, ACH, and SWIFT payment services provided through API-based platform for business customers including wires, ACH transactions, and international transfers.
4. Commercial Deposit Accounts: U.S. dollar deposit accounts for business customers with 100% reserve backing. Customer deposits must be fully backed by reserves.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

Custodia Bank is a Wyoming-chartered Special Purpose Depository Institution (SPDI) providing digital asset custody (Bitcoin and Ethereum) and U.S. dollar banking services (Fedwire, ACH, SWIFT) to U.S.-based business customers. It issues Avit, America's first bank-issued stablecoin on a permissionless blockchain (Ethereum ERC-20), enabling real-time settlement finality for digital asset transactions, and operates the Hazel Network consortium infrastructure connecting 600+ banks for tokenized deposits and stablecoin conversion.

Product overview

Custodia Bank operates as a Wyoming special purpose depository institution (SPDI) serving as a compliant bridge between digital assets and the traditional U.S. financial system. The platform combines U.S. dollar banking services (Fedwire/ACH), institutional-grade Bitcoin and Ethereum custody, and the Avit tokenized deposit system built on Ethereum. The Hazel Network extends these capabilities to a consortium of over 600 banks, enabling tokenized deposits and stablecoin conversions at network scale. Additional offerings include geolocation-triggered programmable payments and on-chain loan participation automation through partnerships with Vantage Bank and Participate. All fiat deposits are maintained 100% in reserve, and the company holds U.S. Patent 11392906 for tokenizing U.S. dollar bank deposits on smart-contract blockchains.

Differentiator

Problem solved

Functional benefit

Brands

• Avit: Tokenized U.S. dollar stablecoin issued by Custodia Bank, designed as a programmable payment instrument akin to a digital cashier's check. Avit tokens are ERC-20 tokens representing bank deposits on the Ethereum blockchain.
• Hazel Network

Products and services

• Digital Asset Custody Institutional-grade custody services for Bitcoin and Ethereum meeting strict institutional custody standards. As a Wyoming-chartered bank and qualified custodian under the Investment Advisers Act and SEC Custody Rule, Custodia provides bankruptcy-remote status for custodied assets under Wyoming bailment laws to digital asset businesses, fintechs, banks, corporate treasurers, trusts, pension funds, and startups.
• U.S. Dollar Banking Services U.S. dollar commercial deposit accounts with Fedwire, ACH, and SWIFT payment services, providing real-time settlement finality for business customers. Customer deposits are 100% reserved ($1.08 cash per dollar deposited) as required by Wyoming SPDI regulations.
• Avit (ERC-20 Tokenized Bank Deposits) America's first bank-issued stablecoin on a permissionless blockchain, issued on Ethereum mainnet using the ERC-20 standard. Avit tokens represent tokenized U.S. dollar demand deposits and function as a bank deposit within the issuing institution and as a stablecoin when transferred outside the network. Protected by U.S. Patent 11392906 for tokenization of U.S. dollar bank deposits on smart-contract permissionless blockchains (issued July 2022). Vantage Bank manages fiat reserves and Fedwire/ACH services while Custodia manages blockchain issuance, redemption, custody, and reconciliation through its Avit Management System.
• Hazel Network A nationwide tokenized deposit and stablecoin network built by banks for banks, enabling community and regional banks nationwide to integrate programmable tokenization technology. Tokens convert to GENIUS Act-compliant stablecoins when sent outside the network, helping banks retain deposits that would otherwise migrate to external stablecoin issuers. Co-founded with Vantage Bank and integrated with Infinant's Interlace platform. As of 2026, the network connects 600+ banks.
• On-Chain Loan Participation Blockchain-based automation for institution-to-institution loan sales, payments, and post-sale servicing, built in partnership with Participate. Enables borrower payments, reconciliation, and tokenized deposit movements to occur in minutes rather than the days required through manual wires and spreadsheets, serving a network of over 600 banks.

Quantifiable outcome

• Cross-border payments between Mexico and US processed in seconds for pennies in cost
• +2 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature4 records

Partnerships

Four partnerships are on record, tiered supporting, core and flagship.

• Texas Bankers AssociationsupportingGTM or Marketing Partner · 5 June 2026The Texas Bankers Association supports the Hazel Network initiative. The association's backing provides regulatory and industry credibility for the tokenized deposit platform designed to help community banks retain deposits.
• ParticipatecoreTechnology or Integration · 7 April 2026Collaboration to automate loan participation payments and servicing using tokenized deposits and blockchain technology. Participate provides the automation and orchestration layer connecting loan participation workflows to Hazel's network of over 600 banks. Solution replaces manual processes with real-time automation, reducing processing time from days to minutes for institution-to-institution loan sales and payments.
• Vantage BankflagshipStrategic or Co-development Partner · 23 October 2025Custodia and Vantage Bank are co-founders of Hazel Network, a tokenized deposit and stablecoin platform. Vantage Bank serves as reserve manager and provides Fedwire/ACH services while Custodia provides blockchain infrastructure. The partnership launched America's first bank-issued stablecoin on a permissionless blockchain (March 2025) and expanded into a national network for U.S. banks to issue tokenized deposits. The collaboration enables dual-mode tokens functioning as bank deposits within participating institutions and stablecoins when transferred outside.
• InfinantcoreTechnology or Integration · 23 October 2025Infinant's Interlace platform is used alongside Custodia's bank-grade blockchain platform to enable tokenized deposit services for banks and credit unions. The platform integrates tokenized deposits and stablecoins directly into traditional online banking environments.

Scale indicators4 records

Recent moves8 records

Expansion highlights6 records

Broad incumbents

• Tether: Issuer of USDT, the largest stablecoin globally. Comparable as a dominant stablecoin issuer whose position Custodia's regulated bank-issued model is explicitly designed to compete with.
• Coinbase: Largest U.S. crypto exchange with Coinbase Custody Trust serving institutional clients. Comparable as a broader incumbent offering custody and stablecoin-adjacent services, though much larger and exchange-anchored.
• Ripple: Operator of the XRP Ledger and issuer of RLUSD stablecoin, with cross-border payments as a core product. Comparable in the stablecoin and programmable cross-border payments category.

Direct peers

• Anchorage Digital: Federally chartered digital asset bank offering institutional custody, trading, and staking. Directly comparable as another chartered bank serving crypto-native institutions with qualified custody services.
• Paxos: Regulated blockchain infrastructure platform that issues regulated stablecoins (USDP, PayPal USD) and provides institutional crypto custody. Closely comparable to Custodia's Avit issuance and qualified custodian positioning.
• Circle: Issuer of USDC stablecoin and operates Circle Mint for institutional digital asset redemption. Comparable to Custodia as a regulated stablecoin issuer competing for the bank-issued stablecoin category.
• BitGo: Institutional digital asset custody and prime brokerage serving exchanges, fintechs, and asset managers. Comparable as a non-bank qualified custodian competing for the same institutional crypto custody mandates.
• Galaxy Digital: Digital asset financial services firm offering trading, asset management, custody, and mining. Comparable as a diversified crypto-financial-services platform targeting institutional clients.
• Fireblocks: Institutional custody infrastructure provider for digital assets with MPC-based wallet technology. Comparable as a custody and tokenization infrastructure layer serving banks and fintechs.

Emerging players

• Prime Trust: Digital asset custodian and qualified trust company serving fintechs and crypto businesses. Comparable as a regulated non-bank custody and fiat infrastructure provider, though with different charter.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/custodiabank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds5 records

Investors23 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Custodia Bank