Wyoming Approves Avanti Financial As A Digital Asset Custodian

Avanti Financial Group Inc was granted a banking charter by the Wyoming State Banking Board on Wednesday, in unanimous approval.

In mid-September, the banking board granted San Francisco-based cryptocurrency exchange Kracken a similar Special Purpose Depository Institutions (SPDI) charter, permitting it to act as a digital asset custodian.

SPDI are approved financial entities that can support digital asset custody and transactions, in addition to traditional mainstream assets, according to the 2019 definition in the Wyoming Legislature.

What Happened: As a qualified digital assets custodian, Avanti plans to expand operations in the cryptocurrency space by providing commercial accounts starting 2021, followed by other accounts with high minimum balance requirements.

In an email statement to CoinDesk, Founder and CEO Caitlin Long said that "Kraken definitely captured attention, but now that there's a second one chartered. It's no longer a one-off situation, and a trend is in motion."

Why Does It Matter: CoinDesk claims that the Wyoming bank will have to raise additional capital to obtain a Certificate of Authority.

Avanti's product offering will include a programmable stablecoin linked to the U.S. Dollar called 'Avit.' With the issue of Avit, the company plans to address problems in areas like accounting, tax computations, and legal requirements for stablecoins.

Avit's first launch will be on a sidechain-based settlement network called 'Liquid,' followed by an issue on the Ethereum network.

Benzinga's Take: After the BTC halving event in May last year, and its price currently soaring to $13,200, Avanti's SDPI charter approval couldn't have come at a better time.