The Avanti Financial Group just got a license following Kraken’s steps and has become the second crypto company that will operate as a crypto bank in the United States. In our crypto news today, we read more about it.
Avanti Financial Group is a company founded by the former managing director at Morgan Stanley Caitlin Long who announced that they have been granted a license to offer banking services by the Wyoming State Banking Board. With this decision, the company became the second crypto company to receive a banking license after Kraken which also got a license from the Wyoming State Banking Board.
INTRODUCING AVANTI BANK! https://t.co/CfHCR0y4UP pic.twitter.com/r1qXRXFjKL
— Avanti Bank & Trust (@AvantiBT) February 24, 2020
The license allows Avanti to offer financial services in the same way that a traditional bank does only with the addition of crypto services that are already provided by the platform. According to the company, the application in the state of Wyoming was the key to meeting the expectations like Kraken did since it is the only state that has a regulator with a bank supervisory and regulatory program for digital assets that are mature enough to ensure the operations of the banking platform that offers risk-free custody services.
— Avanti Bank & Trust (@AvantiBT) October 28, 2020
The only type of financial institution in the United States that can provide final and simultaneous settlements of trades between digital assets and the US dollar is a Wyoming special-purpose depository like Avanti. Avanti said in a tweet that the first crypto product that the company will launch will be a pegged stablecoin to the dollar and backed by physical deposits that are made to the bank account. The token will be called AVIT and will be available for the customers in the first quarter of 2021:
“AVANTI IS OFFICIALLY A BANK! Our charter & business plan were approved 8-0 today, incl. #Avit (a tokenized US dollar, which we announced we’ll issue initially on #Liquid (#Bitcoin sidechain) & #Ethereum. Open for commercial customers early Q1. More here:https://t.co/CgNazN08zV
— Avanti Bank & Trust (@AvantiBT) October 28, 2020”
Avanti also revealed that the tokens will run on Ethereum which is a critical blockchain for those that seek to take advantage of the programmable smart contract and Liquid which is a sidechain developed by Blockstream for everyone that seeks to benefit from inter-exchange transfers for the arbitrage operations. The company also confirmed a collaboration with Blockstream to develop the token explaining that it will not be like a normal crypto asset and it would be bank money that are issued on the blockchain.
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