Long hopes that the financial institution will be ready for the first months of 2021.
Avanti would be the name of the first cryptobank in the United States of America, the creation of this financial institution is being driven by the initiative of former Wall Street executive Caitlin Long.
The former executive of the Wall Street exchange has made significant advances in legal matters in the State of Wyoming for new technologies, managing to propagate some 13 laws that enable the use of blockchain technology in the state.
The developers of this project seek to make use of the progressive position of Wyoming. In this sense, Long hopes to take advantage of the “legal facilities” to establish the foundation of the country’s first cryptobank.
Intending to publicize this project for the creation of the crypto-financial institution, Long made use of her official Twitter account to publicize this goal and to set her opinion on this idea.
Besides, Long explains that a bank that is regulated by the authorities, allows to be the driver for Federal Reserve payments, and the place of custody for government funds is necessary for the United States market.
“A critical piece of the US market infrastructure is missing, a regulated bank that could serve as a bridge to the US Federal Reserve for handing payments and could provide custody services for big institutional money”.
Hoping to offer services for the digital asset industry and create products that will facilitate the development of operations within the market, Long said they are in the process of making requests to open the doors of the Avanti cryptobank in the first months of 2021.
During this announcement on Twitter, Long thanked Mark Gordon, who is the governor of the state of Wyoming, for being a great help in promoting the creation of this initiative. Avanti will make use of the Special Purpose Depository Institutions Act “which is the optimal structure for compliance with regulations in the US for the provision of financial services around crypto”.
The aforementioned law supposes a high level of regulation, since these legal instrument details that all deposits made in the institution (which in the case of Avanti are cryptoactive) must be fully reserved. Therefore, the institution cannot make any use of these cryptoactives for banking operations. She mentions that they must comply with other regulatory processes, such as the establishment of the “Know Your Client” tool.
Alliances Needed to Boost the Avanti Project
In one of her tweets, Long mentioned that she made great strides to form an alliance with Blockstream and facilitate the necessary infrastructure to operate. The former executive said she even had conversations with Blockstream CEO Adam Back, who concluded that the company would prove to be “an ideal partner to serve large institutional investors that require regulated banks to provide services around bitcoin in USD markets”.
Despite this, Avanti will have a neutral stance regarding market preferences and will adopt all kinds of cryptocurrencies requested by customers.
To conclude, Long said that this important advance will be an incredible attraction for all economic sectors, whether traditional or crypto. If created, the bank could help improve liquidity throughout the traditional and crypto market.
By María Rodríguez
