The Wyoming State Banking Commission has granted the cryptocurrency startup Avanti Financial Group a license to provide banking services.
A license or bank charter means that Avanti can now operate like a traditional bank, but with a little twist, it can hold both cryptocurrency and U.S. dollars. It is scheduled to launch in 2021.
According to a statement issued on October 28, the company can now also host crypto assets such as Bitcoin, and its plan to create Avit (tokenized dollars) has been approved.
According to The Block report, the company’s bank charter application was accepted in July. Avanti is the second cryptocurrency company to become a bank after Kraken Financial, a subsidiary of the US crypto exchange Kraken.
Caitlin Long, founder and CEO of Avanti, said: “Currently, the only US financial institution that can provide final and simultaneous settlement of transactions between digital assets and U.S. dollars is a Wyoming special-purpose deposit institution like Avanti.”
Avanti plans to initially release Avit on Liquid (a side chain of the Bitcoin blockchain) and Ethereum. The company claims that its flagged U.S. dollar “is designed to solve the legal, accounting, and tax issues of stablecoins.”
As a bank, Avanti will be required to fully comply with the “Bank Secrecy Act”, anti-money laundering and OFAC-related laws, regulations and rules.
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