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Avanti Financial raises $37 million to launch institutional crypto bank

  • Posted On - 2021-03-26 06:47:29

The firm has recently announced that it has raised $37 million in a Series A round, bringing the firm a step closer to launch as a digital asset bank.

In an announcement on March 25, The financial firm stated that it will use the proceeds to fund the required regulatory capital essential for the launch, in order to fund development and other operating expenses. The round brings the total amount raised to $44 million.

The people participated in the round are a who’s who of institutional investors including Coinbase Ventures, Binance. US, Morgan Creek Digital, Madison Paige Ventures, AP Capital, and Susquehanna Private Equity Investments, in addition to individuals including Trace Mayer and some of Avanti’s executives and directors. The University of Wyoming Foundation also contributed to the funding round.

Avanti Financial was founded in 2020 as a Wyoming bank engineered to serve between U.S. dollar payments systems and digital assets, as a regulatory compliant bridge. The firm first gained bank charter status from the state of Wyoming in October 2020 also the firm was the second crypto company to become a bank after Kraken Financial which received the bank charter in September of the same year.

Caitlin Long, the founder and CEO of Avanti Financial, stated that the firm has received more than 2,500 inbound customer inquiries since announcing its bank charter approval and looks forward to starting to serve clients later this year. She has not revealed any details about the launch date but mentioned that a fully regulated dollar-pegged stablecoin was in the pipeline.

“Our roadmap includes offering API-based U.S. dollar payment services for wires, ACH and SWIFT; issuance of our tokenized, programmable U.S. dollar called Avit; and custody and on-/off-ramp services for bitcoin and other digital assets.”

In an interview with Cointelegraph in September 2020, Caitlin Long did confirm that Avanti has no intentions of becoming an exchange and will be for institutional investors only.

One of the early Bitcoin adopters and entrepreneur Trace Mayer, who formed the alliance that led Avanti's Series A, stated that Avanti is extremely well-positioned to address the need for legally compliant operators in the digital asset industry as markets mature.

Source: https://cointelegraph.com/news/avanti-financial-raises-37-million-to-launch-institutional-crypto-bank