The financial group plans to launch a stablecoin, which it will call Avit. Among its plans, the bank wants to open business accounts from 2021.
Financial group Avanti follows Kraken as the second cryptocurrency-focused company to obtain an official banking license to operate in the United States. With the title it received, the firm acquires the same authority that the country’s banks have. That allows it to offer regulated traditional financial services, including the custody of Bitcoin and other digital assets.
The Wyoming State Banking Board unanimously approved the banking charter that allows it to operate as a special purpose depository institution (SPDI), according to a statement of the company.
With the license that the regulator granted them, Avanti received the go-ahead for the company’s business plan. This includes services such as custody of digital assets and API-based online banking. However, Avanti focuses on issuing its Avit token, which consists of a US dollar-pegged stablecoin. This asset would run on Bitcoin’s Liquid sidechain and also on Ethereum.
This financial group will offer the cryptocurrency storage service as a qualified custodian under the Investment Advisory Law. This makes it a full reserve bank, which means that all customer funds will be under the control of the company.
Bitcoin-Friendly Banks Is a Trend on the Move
Avanti is the second SPDI bank to have received approval from the United States. In September, cryptocurrency exchange Kraken also obtained a license from the government. However, both still have to go through a series of formalities before they can offer their services.
On her Twitter account, Caitlin Long, Founder, and CEO of Avanti said that she hopes to open the doors at the beginning of 2021. The company still needs to work with the banking department of Wyoming to obtain the certificate that allows them to operate.
The former head of Morgan Stanley said that “Kraken definitely caught people’s attention. However, now that there is a second approved bank, it is no longer a unique situation. This means that there is a trend in motion”.
“A long history of support for Bitcoin and cryptocurrencies in general by the state of Wyoming was key for us to meet our expectations,” said Long. She adds that this is the only state in the country whose banking regulations on digital assets are mature enough. This makes it possible to guarantee the operations of a banking platform that offers custody services without risk.
In August, Avanti said that its Avit token will be aimed at institutional traders and corporate treasurers. They promise that it will not suffer the late settlement and chargeback problems of traditional payment systems.
The growing interest in Bitcoin and cryptocurrencies in general has become more evident worldwide. The creation and approval of startups such as Kraken and Avanti, which focus on the exchange of crypto assets, is just one example. This allows users to have more options to conduct their transactions.
By Alexander Salazar
