Proof of Usefulness Report

Custodia Bank

Analysis completed on 2/6/2026

+52

Proof of Usefulness Score

You're In Business

Custodia Bank is a legitimate, high-profile project (founded by Caitlin Long) attempting to bridge digital assets and US dollar payments as a Wyoming SPDI. However, the project is currently operationally stalled due to the denial of its Federal Reserve Master Account (affirmed by the 10th Circuit in late 2025). This specific submission is of extremely low quality, containing objectively false claims (e.g., 'most people have used my product', audience is 'everyone') and placeholder text. While the entity has raised significant capital (~$50M) and built tokenization technology (Avit), the submission's inaccuracies and the bank's lack of live operational status significantly penalize the score.

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Score Breakdown

Real World Utility+20.0

Audience Reach Impact+2.0

Technical Innovation+11.25

Evidence Of Traction+5.0

Market Timing Relevance+9.0

Functional Completeness+0.25

Subtotal+47.5

Usefulness Multiplierx1.10

Final Score+52

Project Details

Project URL

custodiabank.com

Description

Custodia Bank is formed to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets that can meet the strictest level of institutional custody standards. Custodia is required to fully comply with all applicable laws and regulations, including the Bank Secrecy Act and federal “know your customer,” anti-money laundering and related laws and regulations. Custodia will also comply with Wyoming’s special purpose depository institution and digital asset laws, which include requirements that fiat deposits be 100% reserved and that Custodia meet the strictest consumer protections in the digital asset industry. Custodia plans to open its doors in Q2’22.

Algorithm Insights

Market Position

Growing utility with room for optimization

User Engagement

Documented reach suggests active user community

Technical Stack

Modern tech stack aligned with sponsor technologies

Recommendations to Increase Usefulness Score

Document User Growth

Provide specific metrics on user acquisition and retention rates

Showcase Revenue Model

Detail sustainable monetization strategy and current revenue streams

Expand Evidence Base

Include testimonials, case studies, and third-party validation

Technical Roadmap

Share development milestones and feature completion timeline