Victor Ugochukwu · Dec 14, 2020 . 5min read
Caitlin Long finally gets regulatory approval for Avanti as a Crypto Bank
With the SPDI license, Avanti will not only act as a crypto custody institution but also equally start lending services as a crypto bank.
By Victor Ugochukwu · Oct 31, 2020 . 5min read
Kraken Financials no longer enjoys the exclusive “crypto bank” status with Avanti’s recent Special Purpose Depository Institution – SPDI regulatory approval from the State of Wyoming in the United States.
Caitlin Long, a vocal blockchain and digital asset advocate, have been working on getting a regulatory charter for Avanti. Thus, it will gain a legal backing to act as a crypto custody institution as well as every other function an SPDI is allowable to carry out for customers (retail and institution) by law. For instance, the ability to lend out funds.
Back in June, Caitlin Long led Avanti Crypto Bank to raise $5 million from investors in preparation for a possible banking charter which is now a reality today. The University of Wyoming Foundation led the Angel investment round. Some popular funds within crypto space also participated. Morgan Creek Digital, Blockchain Capital, Digital Currency Group, Lemniscap, Madison Paige Ventures, Malex Enterprises, Susan B. Anthony, LLC, Gary Gigot and others participated.
Avanti board also resolved to launch its own digital currency – Avit stablecoin. This will be pegged to the dollar and will be launching on one of Bitcoin’s sidechain. Specifically, the Avit dollar stablecoin will launch on Liquid before delving into Ethereum blockchain. Moreso, Avanti has employed the necessary human capital to pull this off. It hired five C-level executives who also double as co-founders for Avanti crypto bank. Among them are Bitcoin Core developers Bryan Bishop and Figure Technology’s Zev Shimko.
Avanti Crypto Bank charter added to Kraken’s could start a new wave.
It was recently in September that Kraken got its banking charter approval from the same state of Wyoming. The western mainland state is leading the charge in crafting new laws to help with the adoption of cryptocurrencies and digital assets. Both federal and state laws recognize an SPDI license. And in some specific instances, the charter affords crypto bank holders a global reach.
It’s only a matter of time before more prominent exchanges and other crypto entities turn their eyes towards Wyoming for SPDI licenses. Wyoming has also set a standard for any state looking to ease its laws or create special chatter for crypto.
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