Another Bitcoin Bank Is Officially Chartered in the United States

October 29, 2020

Wyoming is once again displaying its commitment towards integrating all things blockchain technology and cryptocurrency into society at large. The state is offering yet another financial institution a banking charter. Avanti now joins Kraken as the second bank in the United States to offer cryptocurrency related services alongside traditional financial services, according to a company press release.

 

Why Getting A Banking Charter is Good for Banks and Cryptocurrencies

Make no mistake about it. The time for banks to start offering traditional financial services and cryptocurrency related services alongside one another is now. A younger generation of banking customers is going to demand it. In successfully being granted a banking charter, both Kraken and Avanti can now work with other crypto related businesses to give them access to a traditional financial customer base while at the same time offering that traditional customer base access to crypto. Now both segments of the market can benefit from a symbiotic relationship and Avanti can join Kraken in taking a cut of the fees they earn for facilitating the growth of that relationship.

 

Following Two Different Paths to the Same End Goal

Avanti is likely not a name you’ve heard of before today’s announcement, even if you’re aware of every single bank that’s registered across America or you’re deeply into the cryptocurrency scene. The company is marketing itself as a digital asset bank right out of the gate. It really doesn’t have any brand equity within the crypto world specifically.

Contrast that with Kraken, a cryptocurrency exchange based in San Francisco that is one of the most popular exchanges in the world and has been facilitating transactions related to Bitcoin and altcoins for nearly a decade. Its brand presence in the blockchain technology sphere is definitely much larger than that of Avanti. Still, it almost doesn’t matter as both are further blurring the lines between cryptocurrencies and banks and ultimately offering the end customer more power over their own money. That’s what this movement is all about.

 

The Future of Avanti

Founder of Avanti, Caitlin Long, says now that the bank is chartered, Avanti’s main focus will be launching a stablecoin that disrupts the way stablecoins currently function. Long wants to create a stablecoin called AVIT that not only provides a stable safe haven for storing value on the blockchain, but also aims to solve issues related to legal, accounting and tax services.

Other goals for the future of the digital asset bank include offering online banking on the blockchain, offering custodial services to bigger players in the cryptocurrency market and offering commercial banking to businesses next year.

Consider this announcement another step forward for the merging of the traditional and modern financial world.        

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