Avanti recently received a bank charter from the Wyoming State Banking Board, which gives it the right to provide digital asset custody services and create its digital asset. The institution now poses as a rival to the first exchange, Kraken Financial, that received their bank charter from WSBB in September.
The founder of the Avanti Financial group, Caitlin Long (former manager of Morgan Stanley), already sent an application for a bank charter to become a special-purpose depository institution earlier this year. The charter allows it to offer specific banking services, including digital asset custody. It also plans to start opening commercial accounts next year.
In a press release earlier this week, Caitlin Long mentioned the services Avanti plans to offer.
“We will offer products and services that are non-existent in today’s market. The only type of U.S. financial institution that can provide simultaneous transactions between digital assets and the U.S. dollar is Avanti. This is because it is a Wyoming special-purpose depository institution and is the only type currently approved to handle both within the same legal entity.”
Meanwhile, the institution already inaugurated its advisors in July while waiting to receive the bank charter from WSBB. These advisors include Christopher Allen (an internet pioneer), Katie Cox (former Fed official), and Bob McElrath (blockchain architect).
Expected products from Avanti
One primary product the institution is looking to create is its tokenized dollar, the Avit, which it wants to issue on Bitcoin sidechain, Liquid Network as well as Ethereum. Moreover, Caitlin has been planning this for a long time.
In 2019, the Wyoming legislature passed some blockchain-friendly bills to create a haven for crypto-based companies in the state. And as a member of the Wyoming Blockchain Task Force, Caitlin aided the drafting and lobbying for the legislation. Right now, Avanti competes with Kraken Financial. But, both banks plan to begin full operation in 2021.