Custodia loses court battle with Federal Reserve as Kraken gains master account

Custodia’s multi-year legal fight against the Federal Reserve has ended in a loss for the crypto bank, concluded just days after the Fed granted a limited master account to Kraken. The outcome marks a setback for Custodia’s efforts to secure direct banking access, while Kraken’s approval signals a shift in regulatory approach toward crypto institutions seeking Fed-level banking services.