A Wyoming company that was founded by Wall Street and blockchain legislative champion Caitlin Long is applying for a banking state division special purpose depository institution (SPDI) approval.
Caitlin Long announced on Monday that the bank is going to be called Avanti. It will focus only on providing digital assets regulated services. Formed on January 6, Long’s company has raised $1 million in seed funding. As far as what the Avanti future institutional customers will get, this is custody, payment, securities and commodities services.
2/ Co-founder/team news soon. I’ve founded @AvantiBT w/ key support from top people in #crypto + important innovators from traditional finance. Seed funding round recently closed. Avanti will serve institutional customers that need services around #Bitcoin & #cryptoassets.
— Caitlin Long 🔑 (@CaitlinLong_) February 24, 2020
8 Products Already in the Pipeline
Avanti already has 8 products in the pipeline, products that aren’t yet available in the US market and out of which only the one of custody for security tokens has been mentioned. SPDIs are the only structures that can offer custody securities services legally in the US. The balance sheet of Avanti will hold more assets than deposits under administration, whereas its profits will be made from institutional clients, much like State Street, Northern Trust and Bank of New York Mellon make theirs.
Partnership with Blockstream
Avanti is going to close a partnership with Blockstream. The Bitcoin (BTC) startup will provide the custody digital assets hardware and software, as well as BTC applications. Here is what Long said about Blockstream’s role in the Avanti project:
“Blockstream brings software for the bitcoin protocol. … Avanti brings a regulated delivery vehicle to deliver it into the USD markets.”
Adam Back, Blockstream’s co-founder and CEO, said Blockstream’s Liquid is going to help Avanti develop a custody digital asset “one-stop shop” and build both conventional and blockchain-based APIs.
The Wyoming Division of Banking Developing SPDI Policies and Procedures
Since the Wyoming Division of Banking has finalized the applications requirements, it is now focusing on SPDI banks policies and procedures, also on defining how regulatory supervision and examination processes are going to take place. Here’s what Chris Land, the state’s banking division general counsel, said about the progress made by Wyoming until now:
“Wyoming is integrating digital assets into the U.S. banking system for the first time. The first applications that go through the process literally have to be perfect because many of the top financial industry officials in the country will be following the process. Perfection, like art, takes time.”
He also mentioned things should not be rushed and that they are going pretty well until now.