Avanti has received a bank charter from Wyoming State Banking Board, becoming the second chartered crypto bank in the U.S., followed by Kraken. Although, Avanti needs to follow certain conditions such as raising enough capital before it is fully granted with a certificate of authority.
“We will provide products and services that do not exist in the market today. Currently the only type of U.S. financial institution that can provide final and simultaneous settlement of trades between digital assets and the U.S. dollar—because it is the only type currently approved to handle both within the same legal entity—is a Wyoming special-purpose depository institution like Avanti.”
Last year, Wyoming passed a blockchain legislature catering to the flourishing of digital assets firms in the state. Caitlin herself was part of the Wyoming Blockchain Task Force and played a key role in the effective implemetation of the bill in Wyoming. Finally, in July, the Wyoming Division of Banking accepted Avanti’s application to operate as a banking charter.
Above all, Avanti now comes as a direct competition with Kraken Financial that received its own bitcoin banking charter in September. Both the crypto-friendly banks are planning to begin their operation by early 2021. Under the new regulation, Avanti can operate as a crypto bank under the name Avanti Bank & Trust.
Wyoming State Banking Board also announced that the new Bank charter is approved for issuance of Avit, redeemable at par with the US dollar. The tokenized dollar will be initially issued on Bitcoin’s Liquid sidechain, also on the Ethereum blockchain with later on moving to other blockchains as well.