Avanti to Launch Crypto Banking Services in October; Will Roll Out A Digital Asset for Payments
Avanti Financial Inc has been approved by the Wyoming Division of Banking to operate a crypto-focused bank; the Caitlin Long led startup now plans to launch as early as October 2020. According to a blog post announcement by the firm, it will also pioneer a new digital asset dubbed ‘Avit,' which will improve dollar payment efficiency and provide a more conservative option to stablecoins.
The move comes as a boost to Avanti which will now launch in the fall, earlier than the initial target date,
“Avanti Financial Group, Inc. received formal notice … and that its application timeline has been accelerated. As a result, Avanti now expects to open for banking business as early as October 2020.” reads the announcement.
Avanti's Digital Asset ‘Avit'
As more stakeholders join the crypto ecosystem, the demand for stable digital assets has equally risen. It is no wonder stablecoins are among the most liquid digital currencies despite making a debut just recently. Avanti has since hinted at a ‘stablecoin disruptor' in the form of a digital asset ‘Avit' that will be issued by banks as per the prospective framework. Though not pegged to the dollar, Avanti is optimistic that Avit will solve lag challenges in the U.S dollar payment network.
Contrary to stablecoins, Avit provides more legal certainty since it will be issued based on U.S commercial laws. Built on Avanti's digital asset custody platform, Avit will target corporate and institutional clients looking to settle transactions real-time,
“Programmable via Avanti’s user-friendly API, Avit is designed for use by institutional traders and corporate treasurers when they prefer a real-time payment settlement solution in US dollars that does not suffer from the delayed settlement and chargeback issues of traditional payment solutions, or the legal, accounting and tax issues of stablecoins.”
Authorities Giving Banks an Opportunity to Debut in Crypto
The Avanti charter approval comes just a day after the U.S. Office of the Comptroller of the Currency (OCC) gave the green light to federally chartered banks looking to act as digital asset custodians. According to Caitlin, the move will further enable the other 49 states to catch up with Wyoming, which had already allowed banks to act as digital asset custodians. She was, however, keen to note that Wyoming still carries the day as the friendliest jurisdiction to launch banking services for crypto operations in the U.S,
“The OCC and 49 other states do not yet have in place the comprehensive legal structure necessary for enabling digital asset custody without significant legal risk. “