Caitlin Long, a former Wall Street executive who has helped Wyoming enact 13 blockchain-enabling laws, is taking advantage of the progressive Wyoming legislature to establish a beginning crypto-native bank in the U.Southward. The banking concern's name is Avanti, which ways "frontwards" in Italian.

Long made this announcement before today in a serial of 29 tweets. She believes that "a disquisitional slice of U.S. market infrastructure is missing – a regulated bank that can act as a bridge to the Federal Reserve for payments and [offer] custody for BIG institutional money."

Long thanked Wyoming governor Mark Gordon for making this possible, as Avanti takes advantage of the special-purpose depository establishment law "which is the optimal regulatory-compliant structure in the U.S. for providing financial services around crypto."

Cointelegraph spoke to Caitlin Long regarding the launch:

"At that place'south not a banking company in the The states that can custody crypto right now – so this means trust visitor custodians are the only culling at nowadays. Simply trust companies can't offer the risk reduction benefits of direct access to the Fed."

Strict regulation

Even so, Long notes that this special-purpose depository police force has stringent regulatory requirements. According to this law, all deposits — in the instance of Avanti, crypto deposits — must be 100% reserved. Avanti volition besides not be immune to utilise deposits for any financial operations of its own — a do known as "rehypothecation." Strict Know Your Customer standard must be applied. "DON'T EVEN THINK ABOUT trying to employ Avanti for illegal/nefarious purposes!!!!!!!!!," warns Long in a tweet.

Foreign bedfellows

Long stated that she has had many long conversations with Adam Back, CEO and founder of Blockstream and an early correspondent to Bitcoin, prior to starting Avanti. She believes that Blockstream is an "ideal partner for serving Big institutional investors that require regulated banks to deliver them services around bitcoin in USD markets."

However, she states that Avanti volition stay "protocol neutral" and will welcome all cryptocurrencies demanded by clients. According to Long, we can also expect to see:

"STRANGE BEDFELLOWS because it'll concenter the best from the crypto & traditional worlds. I'1000 comfortable + have deep relationships in both worlds & I am equally comfy in NYC's physical canyons as in the wilds of Wyoming."

Long expects Avanti to open its doors in early 2022. If Long is right that could pb to the influx of a significant amount of new liquidity to the market place.

This story was updated at ane.20pm EST/02.25.2020 with Caitlin Long's response