§ 1568. — 1568. (Added by Stats. 2025, Ch. 660, Sec. 8.)

(a)
The Controller may select one or more custodians for the management and safekeeping of digital financial assets that have escheated to the state. Any entity selected as a custodian shall hold a valid license issued by the Department of Financial Protection and Innovation pursuant to Chapter 2 (commencing with Section 3201) of Division 1.25 of the Financial Code.
(b)
If the Controller selects a custodian pursuant to subdivision (a), the Controller shall consider the following criteria in making the selection:
(1)
Storage security to ensure the safekeeping of digital financial assets, including robust cybersecurity measures to prevent unauthorized access.
(2)
Capability to manage private keys associated with digital financial assets and ensure the ability to transfer or transact with the assets when required.
(3)
Proven experience in handling digital financial assets.
(4)
Compliance with all applicable federal and state regulations related to digital financial asset custody.
(5)
Regular reporting mechanisms to the Controller regarding the status and value of the digital financial assets in their custody.
(6)
Processes to reunite owners with their digital financial assets, including maintaining updated contact records and issuing timely notifications.
(7)
Qualifying as a
“financial institution” under Chapter X of Title 31 of the Code of Federal Regulations, which subjects the qualified custodian to the anti-money laundering obligations of the federal Bank Secrecy Act (31 U.S.C. Sec. 5311 et seq.), in addition to any state-imposed anti-money laundering obligations.
(8)
Any other factor that the Controller deems relevant.

Legislative History

Added by Stats. 2025, Ch. 660, Sec. 8. (SB 822) Effective January 1, 2026.