Ex-Wall Street executive Caitlin Long, who assisted Wyoming pass blockchain adoption laws, seems to be capitalizing on the forward looking Wyoming legislature to set up the first crypto-focused bank in the US. The bank has been named Avanti, meaning “forward” in Italian.
Through a series of tweets, Long divulged the news to her followers. She trust that “a critical piece of U.S. 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 conveyed her thanks to Wyoming governor Mark Gordon for assisting in turning her dreams into a reality, as Avanti leverages on the adhoc depository institution rule “which is the optimal regulatory-compliant structure in the U.S. for providing financial services around crypto.”
Long has pointed out that the adhoc depository law has strict regulatory provisions. As per the law, all deposits (crypto in case of Avanti), must be kept as reserves.
Avanti is also forbid to use deposits for any of its financial needs, a process commonly referred to as “rehypothecation.”
1/ INTRODUCING AVANTI BANK, a new US #bank to serve #digitalasset industry, offering new products & svcs not currently available in USD mkts along w/ tech partner @Blockstream. #Wyoming-based. We’re preparing long process of charter application & aim to open early 2021. @AvantiBT pic.twitter.com/fpnN6qBBhW
— Caitlin Long ? (@CaitlinLong_) February 24, 2020
Furthermore, stringent KYC (know your customer) standard must be followed. Long cautions clients that its services should never be used for illegal purposes. In this regard, she has issued the following lengthy tweet.
“DON’T EVEN THINK ABOUT trying to use Avanti for illegal/nefarious purposes!!!!!!!!!.”
6/ SPDIs have VERY high reg rqmts, incl that all fiat deposits must be 100% reserved, assets can’t be rehypothecated + BY FAR strictest, fairest consumer protections in the industry. Many #crypto industry ppl advised & commented on early drafts of #Wyoming‘s SPDI law & its rules.
— Caitlin Long ? (@CaitlinLong_) February 24, 2020
25/ …but they’re the law, so compliance isn’t optional. DON’T EVEN THINK ABOUT trying to use @AvantiBT for illegal/nefarious purposes!!!!!!!!! Since Avanti will be critical #crypto infrastructure, we will vigorously defend Avanti’s license & reputation.
— Caitlin Long ? (@CaitlinLong_) February 24, 2020
Before setting up Avanti, Long had numerous lengthy interactions with Adam Back, CEO and founder of Blockstream and early benefactor of Bitcoin. Long trusts that Blockstream is an “ideal partner for serving BIG institutional investors that require regulated banks to deliver them services around bitcoin in USD markets.”
She, however, clarified that Avanti will remain “protocol neutral” and will support all cryptos as per clients request.
22/ So, don’t be shocked to see people you wouldn’t expect coming together in @AvantiBT–not only top people from both the traditional & #crypto worlds, but also from rival protocols within crypto. Avanti will be PROTOCOL NEUTRAL.
— Caitlin Long ? (@CaitlinLong_) February 24, 2020
As per Long, we can anticipate to see:
“STRANGE BEDFELLOWS because it’ll attract the best from the crypto & traditional worlds. I’m comfortable + have deep relationships in both worlds & I am equally comfy in NYC’s concrete canyons as in the wilds of Wyoming.”
21/ Warning to those easily triggered: @AvantiBT will bring together STRANGE BEDFELLOWS bc it’ll attract the best from the #crypto & trad worlds. I’m comfortable + have deep relationships in both worlds & am equally comfy in NYC’s concrete canyons as in the wilds of #Wyoming.
— Caitlin Long ? (@CaitlinLong_) February 24, 2020
Long anticipates Avanti to start accepting clients by early next year. If Long’s prediction goes true then the crypto market may see fresh liquidity being injected.
