PayPal is now letting cryptocurrency holders on its platform transfer their digital assets to external cryptocurrency wallets and exchanges.

Crypto bank Custodia has filed a lawsuit against the U.S. Federal Reserve saying the central bank has unlawfully delayed a decision on its application for a master account.

The market maker owned by billionaire Ken Griffin, Citadel Securities, is reportedly building a cryptocurrency trading marketplace in a joint effort with a high-frequency trading firm.

Top stories in the Crypto Roundup today:

• PayPal Starts Letting Users Move Crypto to External Wallets
• Crypto Bank Custodia Sues U.S. Federal Reserve
• Citadel Securities Is Building a Crypto Trading Marketplace
• Volatility Across Top Cryptoassets Exploded in May

PayPal Starts Letting Users Move Crypto to External Wallets

PayPal is now letting cryptocurrency holders on its platform transfer their digital assets to external cryptocurrency wallets and exchanges.

The feature was the most requested one the fintech giant saw ever since it started letting users buy, sell and hold crypto in October 2020. On its platform users have access to Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

The ability to move cryptoassets off  PayPal is rolling out to some U.S. users for now, and will roll out to all eligible customers in the country in the coming weeks.

The move towards more open systems and away from closed custodial platforms is part of a trend being followed by other large fintech players who have entered the cryptocurrency space, including the popular commission-free trading platform Robinhood.

It’s notable PayPal isn’t backing off its ambitious crypto plans even amid a plunge in the company’s share price and a cryptocurrency bear market exacerbated by Terra’s fall from grace.

Crypto Bank Custodia Sues U.S. Federal Reserve

Crypto bank Custodia has filed a lawsuit against the U.S. Federal Reserve saying the central bank has unlawfully delayed a decision on its application for a master account.

In a filing to the United States District Court of Wyoming, Custodia accused the Federal Reserve Board of Governors and the Federal Reserve Bank of Kansas City of delaying its application process 19 months and stated the master account is “critical” to its business.

Custodia, formerly known as Avanti, was one of the first Special Purpose Depository Institutions (SPDIs) made under a Wyoming regulatory framework. It was founded by Morgan Stanley veteran Caitlin Long, who’s an early Bitcoin advocate.

Per the crypto bank, a master account would “allow Custodia to directly access the Federal Reserve, rather than going through an intermediary bank. The lawsuit stated the Federal Reserve’s own documentation says “a master account decision” ordinarily takes 5-7 business days.”

Citadel Securities Is Building a Crypto Trading Marketplace

The market maker owned by billionaire Ken Griffin, Citadel Securities, is reportedly building a cryptocurrency trading marketplace in a joint effort with a high-frequency trading firm.

Citadel Securities, a sister company to the well-known hedge fund giant Citadel, is working with Virtu Financial as well as with venture capital firms Sequoia Capital and Paradigm to create more efficient access to deep pools of liquidity for digital assets.

The firms are set to be joined by additional wealth managers, market makers, and other industry leaders in their work to “facilitate the safe, clean, compliant and secure trading of digital assets.”

Volatility Across Top Cryptoassets Exploded in May

Both traditional and crypto markets had negative movements in May, with the exception of the S&P 500 which remained flat. All crypto moved sharply downward this month with the hardest hit being SOL, ETH and XRP which returned -46.0%, -28.8%, and -28.0% respectively.

These movements have meant volatility across the top 5 digital assets increased significantly, with SOL and ADA being the most volatile at 173% and 170% respectively. Both saw more than twice the volatility registered during April.

SOL lost 46% of its value after plunging to $45.74, making its largest monthly decline since launch.

Read more about the top 5 digital assets’ performance last month via CryptoCompare’s latest Asset Report.

State of the Crypto by Top Tier Exchange Volume

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