custodia

Vantage Bank and Rio Bank completed principal and interest payments for loan participants using the loan service platform Participate, utilizing tokenized deposits from Hazel Network. Participate stated that after Vantage submitted the payment, the platform completed the distribution of principal and interest, with tokenized deposits reaching the recipient's digital wallet in less than 3 minutes. The loan balance and payment notifications were automatically updated in sync, connecting the traditional processes that relied on wire transfers, spreadsheets, and email notifications. This payment was announced on October 19.This payment marks the first implementation of the collaboration between the two banks that began in April this year. Custodia CEO Caitlin Long confirmed that the transaction occurred on the Ethereum mainnet. Hazel was jointly developed by Vantage and Custodia: Participate (a subsidiary of BankLabs) provides loan workflows and payment instructions, Vantage offers banking services and reserves, and Custodia is responsible for wallets, blockchain operations, compliance, and reconciliation monitoring.According to the Hazel white paper, this settlement model includes both on-chain and traditional bank ledger records, with transactions permitted only for authorized participants, while customer identities and account information are kept off-chain. Participate plans to offer tokenized deposits and Fedwire payment automation services to 750 banks for loan participation and syndicate payments.

Lightning Labs announced the launch of LayerTree on the X platform, which is a non-custodial scaling solution based on Bitcoin that can connect with the Lightning Network.According to the introduction, LayerTree utilizes Covenants technology, allowing a single UTXO to be shared by up to 1 million users. Users do not need to stay online to receive funds and can exit at any time through a single transaction, with funds not expiring due to timeouts.

On October 12, 2026, the strategy and treasury infrastructure provider INFINIT launched a custodial trading treasury framework, with the first named treasury being APEX Multi-Strategy. The treasury is limited to qualified Hyperliquid markets with an open interest of at least $100 million. Depositors enter with USDC during the specified window and receive receipt tokens representing their shares. The strategy manager trades within a fixed period, and at the end of the term, holders can redeem their shares based on the treasury's USDC value after fees are deducted. The manager sets fees, lock-up periods, deposit windows, risk limits, and strategies before opening deposits.INFINIT states that deposits are held in a 3-of-4 multi-signature, with keys distributed between INFINIT and the operations team. Trading vouchers can be opened and closed, but depositor funds cannot be withdrawn. The company publishes a shared trading wallet and provides weekly performance reports to depositors. The shared infrastructure INFINIT OS covers strategy research and testing, treasury setup, share accounting, controlled execution, risk monitoring, and investor reporting, and can provide strategy managers with legal frameworks, regulated fund licenses, and fund management support.Managers must comply with INFINIT Standard to accept deposits, including completing identity verification and screening, co-investing with depositors in initial loss capital, demonstrating live trading records, and declaring market, leverage, exposure, and drawdown limits. The first treasury is operated by Apex Quantitative Capital, with a strategy based on a systematic CTA momentum model, covering stocks, commodities, and crypto through Hyperliquid perpetual contracts, maintaining a dollar-neutral book.

The European Union is reviewing MiCA, with related consultations involving the requirement for developers of non-custodial Bitcoin wallets to obtain certification before providing software to the public. The European Securities and Markets Authority (ESMA) stated that open-source development, self-custody, automated smart contracts, and permissionless infrastructure should not automatically be considered regulated intermediaries.At the same time, ESMA proposed establishing new regulated services for crypto asset service providers that offer customers access to decentralized protocol services. This review has not changed the current rules, and the European Commission will assess the relevant opinions and submit a review report by June 30, 2027, in accordance with Article 140 of MiCA.

Russia has registered the first batch of cryptocurrency exchange operators and digital asset custodians based on the new regulations that took effect on September 1. The Bank of Russia announced the list of the first authorized operators, which includes 4 exchange operators and 5 custodians.Russia's largest bank, Sberbank, has been included in the list of custodians, alongside Atomyze, Voltari, and Cloud Infrastructure. Sberbank stated that it has applied for the qualification of a digital asset custodian and plans to launch its first cryptocurrency products on December 1 through the SberBank Online, SberInvestments, and SberBusiness platforms, initially supporting Bitcoin (BTC), Ether (ETH), and USDt (USDT).T-Invest Lab, Zefir, and Sistema-Crypto have been included in the list of exchange operators, with VTB Bank appearing on both lists. The relevant registration is based on the cryptocurrency bill signed by President Vladimir Putin in August, which brings exchanges, custodians, brokers, and investors under the supervision of the Bank of Russia and maintains the prohibition on using cryptocurrencies to pay for goods and services.

According to market news, the U.S. Treasury has withdrawn its previous proposal for cryptocurrency regulation concerning unhosted wallets and convertible virtual currency (CVC) mixing services.It is reported that the proposal aimed to expand the scope of monitoring cryptocurrency trading activities, including requiring financial institutions to collect and report relevant information involving unhosted wallets and cryptocurrency mixing services. This withdrawal means that the related monitoring rules will not be advanced for the time being.

Bitcoin News posted on platform X that the SEC plans to propose new rules under the 1940 Act, allowing investment advisors to directly hold related assets when no qualified custodian is willing to custody Bitcoin and other digital assets.The SEC stated that traditional custodians typically refuse to custody such assets, creating a compliance gap in the existing custody framework. The proposal will initiate a 60-day public comment period after its publication in the Federal Register.

Circle's public chain Arc has officially announced that it has launched proxy payments.Its Facilitator Service provides a hosted access path for x402 developers, allowing the acceptance of USDC and supporting on-chain settlements on Arc, Base, and Polygon; this path does not require a Relayer key or a separate Gas fee wallet.

On September 14, Aave Labs released an ARFC on the Aave governance forum, seeking approval to deploy a new Aave V4 Isolated Hub and Spoke to integrate institutional custody collateral as collateral for stablecoin loans. Institutional borrowers will deposit collateral with Anchorage and maintain custody during the loan period, with the custody balance represented on-chain by non-transferable custody collateral tokens CoCT, minted and burned by CustodySync designed by Chainlink.Borrowers will stake CoCT on the Spoke and withdraw stablecoins from the Isolated Hub. The entire loan lifecycle, including liquidation, is synchronized between the custodian and Aave through Chainlink infrastructure. The proposal is limited to a single Isolated Hub and a single Spoke governed by the Aave DAO, without altering existing Hubs, Spokes, or reserves. The underlying assets will always remain in custody, with Anchorage holding the assets as the custodian and acting as the counterparty for account control protocols; Chainlink does not hold the assets.CoCT is a restricted transfer ERC-20, only allowing Hub, Spoke, and CustodySync, with minting and burning exclusive to CustodySync, and each borrower's position corresponding to a contract. The initial plan is to launch a CoCT for BTC held in custody by Anchorage. The next steps involve ARFC discussions, and if supported, it will proceed to Snapshot, followed by submitting the final parameters for AIP.

Cryptocurrency exchange Kraken announced that kHYPE is now live. kHYPE is a wrapped version of HYPE, fully backed by Kraken at a 1:1 ratio and can be verified on-chain.This asset can be used in DeFi on the Ink chain and can be redeemed back to the original asset at any time.

The privacy public chain Zano activated its sixth hard fork (HF6) at block height 3,833,000. The upgrade has been launched on the mainnet, completing the largest upgrade in the network's seven-year history. HF6 introduces Gateway Addresses, providing a directly traceable single balance and instant synchronization for centralized exchanges, DEX, and cross-chain bridges, while retaining existing addresses and their privacy models.Native ZANO can now be cross-chain transferred to Ethereum, Solana, and TON without custody, publicly on external networks, and privacy protection is restored after crossing back to Zano. The upgrade also tightens consensus validation rules and strengthens wallet encryption, mining pool fault tolerance, payment IDs, anti-DoS restrictions, SOCKS5 proxies, and RPC interfaces. HF6 is a prerequisite for the development of the EVM-compatible chain Zano Execution Layer, which currently has no fixed launch date; the next-generation consensus protocol Zenith has been included in the 2027 roadmap.

According to official news, Mantle Vault has officially expanded from CeFi to DeFi, collaborating with Grove, CIAN, and Fluxion to launch a non-custodial yield vault aimed at stablecoin holders. Users can deposit USDC/USDT into Mantle to obtain institutional-level floating yields through the underlying strategy of sUSDS, along with incentives of Fluxion Points and 5.14 million GROVE tokens (with a target APY of up to 6.5%).The vault adopts a conservative non-leveraged structure, with strategies built by CIAN, capital base provided by Grove's Sky Savings Rate, and liquidity entry managed by Fluxion. Previously, Mantle Vault's AUM on Bybit had exceeded $200 million, and Mantle RWA TVL increased from $22 million to $257 million within the year, with DeFi TVL surpassing $755 million.Mantle stated that by expanding into the DeFi space through Mantle Vault, Mantle and its collaborators are committed to enabling all stablecoin holders to access institutional-level yields without borders, free from geographical restrictions and without the need for intermediary access, and all these components can be combined within Mantle's open financial network.

The cryptocurrency industry organization BlockchainAssn has submitted an amicus brief in support of Custodia Bank's application to the U.S. Supreme Court, urging the Court to review whether regional Federal Reserve Banks have the authority to deny access to master accounts for qualified state-chartered banks. The organization warns that lower court support for the Federal Reserve's ruling grants the central bank broad powers to disqualify industries or companies it does not recognize from receiving banking services, effectively vetoing which state-chartered banks can operate.Meanwhile, the Kansas City Federal Reserve Bank has been granted an extension until September 11 to respond to Custodia's application.

The Cyprus Securities and Exchange Commission (CySEC) will conduct on-site inspections and off-site reviews of authorized crypto asset service providers from the second half of 2026 to the first half of 2027, with a focus on institutions providing digital asset custody services.This action is part of the 2026 joint supervisory action coordinated by the European Securities and Markets Authority (ESMA), which aims to assess areas such as institutional governance and control frameworks, key and storage management, private key security, wallet storage, and access controls.The review will also cover trading controls, monitoring and incident response, smart contract security, and third-party risk management. CySEC stated that the relevant standards are mandatory, and the institutions' compliance readiness will be used as a selection criterion for subsequent inspections.

According to Cryptopolitan, the Central Bank of Russia (CBR) has released a draft of regulatory rules for the cryptocurrency market, covering the registration and operational requirements for cryptocurrency exchanges, digital custodians, and token issuers. The draft stipulates that the minimum net assets for digital custodians must be between 50 million and 250 million rubles (approximately 600,000 to 3 million USD), with the specific amount depending on the nature of the business.These rules will complement the "Digital Currency and Digital Rights Law" passed by the State Duma of Russia earlier this month, which is expected to officially take effect on September 1, 2026. Under the new framework, non-qualified investors can only purchase mainstream assets such as BTC, ETH, and USDT up to a limit of 4,000 USD per year; industry participants will have a transition period until March 1, 2027, to complete compliance and approval procedures.

Fox Business crypto reporter posted on the X platform stating that the bill outlines the rules for handling digital assets in the event of bankruptcy of exchanges or custodians.The bill helps ensure that customer assets receive the same protection as traditional financial assets and remain the property of the customers, rather than becoming part of the company's bankruptcy estate. This could help prevent a situation similar to FTX from occurring again.

According to monitoring by The Bitcoin Historian, the CEO of Telegram announced that a non-custodial Bitcoin wallet will be launched for all users this summer, with Telegram having over 1 billion active users.

Telegram founder Pavel Durov stated in a post on his personal channel that this summer will see "the largest deployment of non-custodial crypto wallets in human history." Telegram plans to integrate a native non-custodial Gram wallet into all its applications.Pavel Durov mentioned that the wallet will provide over 1 billion Telegram users with an instant, zero-fee cryptocurrency trading experience, further popularizing on-chain payments. He stated, "We are bringing the native non-custodial Gram wallet to every Telegram application."

Custodia Bank has submitted a petition for rehearing to the U.S. Supreme Court, requesting confirmation on whether the president of the regional Federal Reserve Bank has the authority to refuse to provide master account services to institutions. Custodia Bank has applied for a Federal Reserve master account multiple times and was denied by the Federal Reserve in 2023, citing significant safety and soundness risks associated with its new business model and its intended focus on digital assets.Custodia Bank subsequently appealed to the U.S. Tenth Circuit Court of Appeals, which ruled in favor of the Kansas City Federal Reserve Bank in 2024. The U.S. Supreme Court will decide in October whether to hear the case.