US Gets Another Crypto Bank: Avanti is Officially a Bank

News / 29.10.2020

The Wyoming State Banking Board has granted Avanti Bank & Trust a bank charter. Thereby giving Avanti Financial Group the same powers as national banks and approving Avit – a tokenized US dollar. Last month, San Francisco-based crypto exchange Kraken Financial became the first crypto bank after receiving the state’s banking board’s nod. Now, Avanti will be competing directly with Kraken Financial.

America’s Second Crypto Bank

With this announcement, Avanti Financial Group will be able to provide custody services for digital assets as a “qualified custodian.” Among Avanti’s products approved by the baking board is a tokenized US dollar Avit, nicknamed “stablecoin disruptor.” Caitlin Long, CEO of Avanti Financial Group, claims, “Avit is designed to solve widely-acknowledged problems with legacy payment systems faced by traders, investors, and corporate treasurers.”

Initially, the company aims to issue Avit on Liquid Network (Bitcoin’s sidechain) and Ethereum blockchain. Further on, it will decide to issue Avit on other networks based on user demand and network security assessment.

Wyoming – A Crypto Heaven

The US state of Wyoming has become a haven for cryptocurrency companies since it enacted several blockchain laws to welcome digital asset firms. These laws made it possible for companies such as Kraken and Avanti to get a crypto-friendly banking license.

A big credit goes to Caitlin Long for co-founding Wyoming Blockchain Coalition. It’s a lobbying group responsible for pushing for the crypto-friendly bills in the US’s least populous state. Long partnered with Tyle Lindholm, a state representative, and long crypto enthusiast, to push the blockchain legislation. Thus making Wyoming the first and only to enact a comprehensive and welcoming legal framework for personal and commercial use of blockchain technology.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"