Crypto-friendly Custodia Bank achieves SOC 2 Type II compliance certification

Custodia Bank, a Wyoming-based crypto-friendly bank, has taken a major step forward in its security controls by achieving certification as a System and Organizational Controls 2 Compliant Bank.

In January. 8, Custodian bank announcement it had achieved SOC 2 Type II, adding to its previous milestone of completing the Type I audit.

SOC 2 is a cybersecurity compliance framework from the American Institute of Certified Public Accountants that provides auditing and reporting on an organization’s internal security controls. The main objective is to assess a service provider’s ability to securely store and process customer data. This is a major certification for technology companies.

Founded by Bitcoin advocate and investor Caitlin Long, Custodia is a state-chartered bank focused on banking, payments, and digital asset custody solutions for U.S. business customers.

“It is unusual for banks in the United States to obtain SOC 2 certifications, as Custodia has done, and typically only a small number of U.S. banks seek them,” said Caitlin Long, chief executive of Custodia. “But as a ‘gold standard’ for technology company security controls, SOC 2 Type II certifications are essential to serving the most tech-advanced customers. Custodia is proud to have obtained Type I and Type II certifications.

Custodia Bank, which has struggled to establish itself in the banking industry despite a challenging regulatory environment, said in its announcement that 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 focus on availability and confidentiality.

Custodia sued the Federal Reserve in June 2022 over complaints related to its application to open a master account with the Federal Reserve Bank of Kansas City.

A master account allows banks to access the Federal Reserve directly, rather than going through an intermediary bank. Guard lost the initial trial in March 2024, but appealed.