Avanti Financial Group Granted 2nd Crypto Banking License in Wyoming

(Last Updated on November 4, 2020)

A giant leap forward for digital asset banking in the United States as AvantiBank has been licensed to be the 2nd crypto bank through the state of Wyoming.

October 28th, 2020

Is this the road we wish to continue down as Bitcoiners?

My first rambling thoughts when hearing about Avanti and the Avit stable coin.

  • Not your keys, not your coins – self custody is the only true way to be responsible for your wealth and financial future
  • Another bank backed stablecoin that can be regulated, debased, devalued, and toyed with however the bank/state/govt sees fit
  • Easy to use – bank custody of digital assets will help older generations and anyone who resists learning or reading..
  • Bring in the masses while selling our soul deeper into state and federal regulating bodies

Wyoming is sitting a top a possible gold mine on the future of cryptocurrency business as the regulatory leader towards the digital asset space. The first major push was seeing Kraken get a banking license and start moving its business out there in September.

The Wyoming State Banking Board today voted 8-0 to grant Avanti Bank & Trust a bank charter, the type of which gives Avanti the same powers as national banks in its approved business lines. Avanti’s approved business plan includes several products and services, including a tokenized U.S. dollar called Avit™*; custody services for digital assets as a “qualified custodian” under the Investment Advisers Act; API-based online banking services, where customer deposits must be 100% backed by reserves; and prime services for digital assets. Avanti plans to provide commercial accounts in early 2021 and other accounts with high minimum balance requirements soon thereafter. 

https://avantibank.com/bank-charter-granted/

Not only will Avanti start offering it’s cryptocurrency banking solutions – it will also issue the Avit.

Avit = a digital tokenized U.S. Dollar (stable coin)

This will be used so that Avanti can issue its own stable coin pegged 1:1 to the U.S. dollar for customers to hold and instantly transact into Bitcoin and other cryptocurrencies.

If you are not familiar with stablecoins, they are an excellent way to avoid cashing out into complete fiat but remain 1:1 with the dollar as crypto markets can be volatile or you may be waiting to enter on a trade. Tether is the original stablecoin for this purpose but has been an unlikely tool for any registered banking group due to its centralization and ownership by the tether cartel. Somewhat joking on the cartel part, but the ability to print Tether from thin air has often made critics angry and Bitcoin maxis skeptical about its long term value.

This is one of the larger signs of blockchain utilization inside of a banking structure – continued stablecoin production for their own security and control over clients U.S. dollar assets.

Ensuring that any of their clients will be issued a proper, regulated stable coin that is tied 1:1 to the fiat currency they bring in.

Avanti Financial Group, Inc. is a Wyoming based bank formed to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets that can meet the strictest level of institutional custody standards. Avanti will be required to fully comply with all applicable laws and regulations, including the Bank Secrecy Act and federal “know your customer,” anti-money laundering and related laws and regulations. Avanti will also comply with Wyoming’s special purpose depository institution and digital asset laws, which include requirements that fiat deposits be 100% reserved and that Avanti meet the strictest consumer protections in the digital asset industry. 

What kind of issues could still be present?

AVIT must remain 1:1 to all fiat injected – for example if the bank decides to issue additional AVIT for promotions, or to shareholders, or to new business clients and partners, or because of a hack it will dilute the AVIT supply and debase its true value

If the blockchain of AVIT is attacked by an outside or inside malicious actor – how will the bank respond and what controls are currently in place?

Are they running some sort of decentralized node system or double check that will ensure the blockchain would need multiple signatures or multile actors to be able to attack the chain moving forward?

I would highly recommend deeper research into Avanti’s use of AVIT coins before I allowed any material amount of U.S. dollars to sit idle in their stable coin. It should be protected under Wyoming’s “special purpose depository institution and digital asset laws” but this could get quite blurry when the U.S. dollar starts being inflated quickly and printed around the country.

But read the fine print closely, this isn’t an outlaw Bitcoin project or one that focuses on decentralized freedom..

It’s focus is to hold and control your digital keys to make it “easier” for individuals to invest in digital assets.

Now is the time I have full faith in mankind that you can read, research, and educate yourself on how to buy, store, trade, and sell cryptocurrency such as Bitcoin.. I believe anyone can make that leap and it is not a far leap to make, especially in today’s digital landscape.

Not your keys, not your coins!

Ultimately all Bitcoin believers should self custody and take ownership of your Bitcoin.

The goal is to be able to step outside of corrupt and inefficient nation monetary systems..

Remember that each time governments adopt new regulation towards cryptocurrency, the closer we come to them having more influence and power over our digital assets. While some see this as a necessary evil regarding bringing mass adoption and seeing real evolution in our monetary systems..

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