Caitlin Long to Open First Digital Bank on Blockchain
Caitlin Long is a former Wall Street executive who is now regarded as a cryptocurrency pioneer. She recently revealed that she is currently planning to launch the first digital bank.
What Are the Plans?
Long revealed her plan on Twitter. Over a string of 29 tweets, she introduced the concept of Avanti. Based on the Italian word for ‘forward’, it will be the first crypto-native bank in the US.
She said that this is a “critical piece of U.S. market infrastructure” that is currently missing. Avanti will be a regulated bank that carries out the role of acting as a bridge to the Federal Reserve. This could see it handle huge amounts of institutional money for payments,
The aim is to get it up and running in early 2021. Long thanked the Wyoming governor, Mark Gordon, for introducing the legislation that makes this possible in the state. The special-purpose depository institution law in Wyoming is what makes this digital bank viable there.
It is worth noting that the regulations in Wyoming are tough. They make it clear that deposits, such as the crypto held by Avanti, need to be 100% reserved. The digital bank also can’t use the deposits for its own financial operations. Long pointed out in a tweet that people shouldn’t even consider using Avanti for “illegal/nefarious purposes”.
Who Else Is Involved in Avanti?
Another key figure in this venture is Adam Back. He is the founder of Blockstream and was involved in the early days of the Bitcoin currency. Long says that she has spoken with Back at length and believes that Blockstream is the best partner for dealing with their big institutional investors.
It was also pointed out that the service will be protocol neutral. Any type of cryptocurrency asked for by clients will be welcomed. Indeed, it is hoped that Avanti will introduce new relationships between crypto and the traditional financial world.
The project was formed at the start of January this year. To date, it has raised $1 million in seed funding.
What to Expect Next?
It should become clearer over the next year or so how Avanti might change the crypto landscape. Certainly, hopes are high that the first regulated digital bank will be a game-changer.
By introducing traditional financial institutions to the blockchain, it will set the scene for a new way of working. There are eight products planned initially. The first one of those to be named is custody for security tokens.
This is an intriguing prospect that could bring huge amounts of fresh liquidity to the market. With the idea of crypto USD still possible and a presidential candidate endorsing crypto, there is no doubt that exciting times lie ahead.