Former Wall Street executive Caitlin Long is launching the first native bank crypto in the US “Avanti”. The bank would open operations in 2021.
Former Wall Street executive Caitlin Long announced the launch of the first crypto bank in the US UU. It will be called Avanti, which means “forward” in Italian and will focus solely on providing regulated services for digital assets. The crypto news media Coindesk listed it as the first bank dedicated to crypto assets in that country.
Long started a 29-tweet Twitter thread announcing the release:
“1 / INTRODUCING AVANTI BANK, a new US #bank to serve #digitalasset industry, offering new products & svcs not currently available in USD mkts along w / tech partner @Blockstream. # Wyoming-based. We’re preparing long process of charter application & aim to open early 2021. @AvantiBT “
For her, “an important part of the infrastructure of the United States market is missing: a regulated bank that can act as a bridge to the Federal Reserve for payments and offer custody of LARGE institutional funds.”
Caitlin Long launches Avanti, the first US native crypto bank
Avanti will provide payment, custody, securities and raw materials activities for institutional clients that use digital assets, according to Coindesk.
The crypto news media Cointelegraph said that Long, who helped Wyoming to enact 13 laws that support blockchain, is taking advantage of the state’s progressive legislature to establish Avanti.
According to Coindesk, Long is preparing to request a charter application called SPDI (special purpose deposit institution statute), before the state banking division. The company, formed on January 6, has already raised USD $1 million in initial funds.
While the company has not yet submitted its application, it already has eight products in its portfolio that are currently not available in the US market, the media said. And he added that because fiduciary companies cannot guard securities under US law. In the US, SPDIs are in a unique position to fill the void.
A benevolent law, but also a strict one
Cointelegraph said the former Wall Street executive thanked Wyoming Governor Mark Gordon for making this possible, since Avanti takes advantage, among other laws, of the special purpose deposit institutions law “which is the optimal structure that complies with US regulations UU. to provide financial services around crypto. “
However, Long noted that the aforementioned law has strict regulatory requirements. According to this law, all crypto deposits, in the case of Avanti, must be 100% reserved. Nor will Avanti be allowed to use deposits for any of its own financial operations, a practice known as “rehipotection.” The strict KYC standard must be applied (Know your customer).
Long expects Avanti to open its doors in early 2021. If Long is right, the first crypto bank in the US could attract a significant amount of new liquidity in the market.