The idea of a crypto bank is gradually going mainstream in the United States. Banking authorities in the state of Wyoming approved yet another financial company to offer crypto-related services. Avanti Financial reportedly gained the approval on Wednesday, as it sought to offer digital currency and custody services. For the record, the company becomes the second institution approved to operate as a crypto-friendly bank.
This is a milestone as it bridges the gap between traditional and digital currency financial services.
Avanti Becomes US Second Crypto Bank
Per the announcement, the Wyoming State Banking Board approves Avanti’s bank charter after a supportive vote of 8-0. With approval, Avanti can operate the crypto bank services similar to other national banks. As per the company’s business lines, the crypto-friendly platform will launch its native token dubbed AVIT. It is basically a stablecoin pegged to the United States dollar, which Avanti nicknamed “stablecoin disruptor.”
This stablecoin launches to addresses certain challenges faced by investors, traders, and corporate treasurers with legacy payment systems. Unlike other stablecoins, the company claims that its AVIT token can solve accounting, legal, and tax issues. Avanti intends to launch the stablecoin on Bitcoin’s sidechain, Liquid, and the Ethereum blockchain. The token might expand to other blockchains in the future.
Crypto Goes Mainstream in the US
Additionally, the company plans to debut a custody service for digital assets with the crypto bank under the Investment Advisers Act. Also, it hopes to provide online banking services and other prime services that relate to digital currencies and assets. The commercial accounts roll out on the platform by next year. The CEO of Avanti, Caitlin Long, commented:
“Avanti’s mission is to provide a compliant bridge between the traditional and digital asset financial systems, with the strictest level of institutional custody standards. […] We will provide products and services that do not exist in the market today.”
Kraken, a leading digital currency trading platform, was the first company that gained approval to debut a crypto bank. Precisely on September 17 of this year, the Wyoming State Banking Board granted the exchange a US bank charter. This authorized the company’s move to launch a digital assets banking institution recognized by both state and federal law.