Caitlin Long, Attracting More Wall Street Money to Crypto with Avanti Bank

Caitlin Long, a Wall Street veteran, is joining forces with blockchain firm, Blockstream to launch Avanti Bank, a crypto-focused financial institution that will offer regulated services to institutions working with digital assets, according to a tweet on February 24, 2020.

Avanti to Bridge the Gap between Wall Street and Crypto

As stated in her tweet, Caitlin Long’s Avanti bank seeks to promote the mainstream adoption of bitcoin (BTC) and altcoins by offering products and services that are not currently available to players in the U.S. markets.

Long tweeted:

“Introducing Avanti Bank, a new U.S. #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 a long process of charter application & aim to open early 2021. @AvantiBT.”

Reportedly founded with support from several bitcoin big whales, important players in traditional finance, Long says Avanti Bank plans to serve enterprises and institutional customers that need financial services around bitcoin and cryptoassets.

“A critical piece of U.S. market infrastructure is missing — a regulated #bank that can act as a bridge to Fed for payments + custody #crypto for BIG institutional money (pensions/endowments/foundations/corps/sov wealth) who need this b4 entering #crypto in a big way. The regulation had blocked it,” Long added.

Avanti Applying for SPDI Charter

Importantly, Long has made it clear that Avanti plans to surmount all the regulatory hurdles that have made seemingly impossible for existing U.S. banks to provide optimal services to crypto-focused businesses, by applying for the Wyoming state special-purpose depository institution (SPDI) law.

Avanti Playing by the Rules

While the Wyoming SPDI legislation gives financial institutions the power to service crypto firms, this legislation also comes with very stringent requirements. The SPDI regulation says all fiat deposits of consumers must be 100 percent reserved and the bank is not allowed to use its clients’ assets for its financial operations.

Long has hinted that Avanti Bank plans to operate in accordance with the ethos of “NotYourKeysNotYourCoin,” by offering various levels of institutional custody services including multisig signing-as-a-service, bailment and more.

Long tweeted:

9/ In a #bailment, the concept is your asset remains legally yours even if you give temporary possession of it to a service provider for safekeeping (so if your service provider goes bust while holding your asset in its custody you get it back w/o waiting thru messy bankruptcy). — Caitlin Long 🔑 (@CaitlinLong_) February 24, 2020

To make Avanti a huge success, Blockstream will be in charge of the Bitcoin applications, as well as the necessary hardware and software needed to custody digital assets.

If all goes as planned, Avanti Bank will go live in early 2021.