- Caitlin long is getting ready to apply for a special purpose depository institution (SPDI) charter with the state’s division of banking.
- Currently based in Wyoming and founded by the blockchain enthusiast, the company has already raised $1 million in seed funding.
Caitlin long is getting ready to apply for a special purpose depository institution (SPDI) charter with Wyoming state’s division of banking. This upcoming financial institution is to be called Avanti and will be focused on providing regulated services for digital assets.
Currently based in Wyoming and founded by the blockchain enthusiast, the company has already raised $1 million in seed funding.
An application has yet to be submitted for the company though, but it already has several products in the pipeline that are not currently available in the market over in the United States. This is because trust companies aren’t allowed custody securities under the law in the country with SPDIs being the ones to fill in the space.
The balance sheet for the new bank has plans for holding more assets under administration than deposits. These profits are generated by providing services to institutional clients. This is in a similar light to that of the Bank of New York Mellon and Northern Trust.
Digital assets will be custody on the new bank without any change in ownership of such assets.
Going off the Wyoming state law, the SPDI banks must keep hold of customers Fiat demand deposit as liquid assets and aren’t able to lend. These kinds of entities are able to operate under the regulatory oversight of the crypto-positive Wyoming division of banking.
As per CoinDesk, the new bank is teaming up with bitcoin and blockchain technology start-up, Blockstream. This will help provide bitcoin applications as well as the software/hardware needed to custody digital assets. In an email Long said of the following:
“Blockstream brings software for the bitcoin protocol… Avanti brings a regulated delivery vehicle to deliver it into the USD markets.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!