Caitlin Long, a former Wall Street manager who helped Wyoming to introduce 13 blockchain-activating laws, benefits from Wyoming’s progressive legislator to establish a first crypto-native bank in the US The name of the bank is Avanti, which means “forward” in Italian.
Long earlier made this announcement in a series of 29 tweets. She believes that “a critical piece of US market infrastructure is missing – a regulated bank that can act as a bridge to the Federal Reserve for payments and [offer] custody for BIG institutional money. “
Long-awaited Governor Wyoming Mark Gordon for making this possible because Avanti uses the law on the custodial institution for special purposes, which is the optimal regulatory structure in the US for providing financial services around crypto. “
Long notes, however, that this special retention law has strict legal requirements. According to this law, all deposits – in the case of Avanti, crypto deposits – must be 100% reserved. Avanti is also not permitted to use deposits for its own financial transactions – a practice known as ‘rehypothecation’. Strict Know Your Customer standard must be applied. “DO NOT EVEN THINK ABOUT trying to use Avanti for illegal / nefarious purposes !!!!!!!!!”, Long warns in a tweet.
Lang stated that she had many long conversations with Adam Back, CEO and founder of Blockstream and an early Bitcoin employee, before starting Avanti. She believes that Blockstream is “an ideal partner for serving BIG institutional investors who need regulated banks to provide their services around bitcoin in USD markets.”
However, it states that Avanti remains “protocol neutral” and welcomes all cryptocurrencies that customers demand. According to Long, we can also expect that:
“STRANGE BEDFELLOWS because it will attract the best of the crypto and traditional worlds. I am comfortable + have deep relationships in both worlds and I am just as comfortable in the concrete gorges of NYC as in the wilderness of Wyoming.”
Long expects Avanti to open its doors in early 2021. If Long is right, it can lead to a significant amount of new liquidity entering the market.