Avanti Statement on its Application to Become a Federal Reserve Member Bank
August 28, 2021; Cheyenne, Wyo. – Avanti Financial Group, a bank chartered to serve regulatory-compliant businesses in the digital asset industry, today confirmed press reports that it filed an application to become a Member Bank of the Federal Reserve on August 5, 2021. This membership application is different from Avanti’s prior application to obtain payment system access from the Federal Reserve via a master account, which Avanti filed in October 2020 and which remains pending. Avanti meets the requirements for both membership and payment system access, and with this latest application, Avanti becomes the first digital asset bank to seek formal regulation by the Federal Reserve in addition to its existing regulator, the Wyoming Division of Banking.
By applying for Federal Reserve membership, Avanti is formally accepting what it had already informally accepted, which is the very same regulatory capital, compliance and supervisory examination standards that apply to traditional banks. By approving this application, the Federal Reserve would open a pathway to its oversight of Avanti and other compliant actors in the digital asset industry that wish to meet the same requirements.
Key dates in Avanti’s journey include:
- June 22, 2020: Avanti delivered its proposed business plan to the Federal Reserve Bank of Kansas City, including its plan to provide U.S. dollar banking services and digital asset custody services as well as to issue a banking product analogous to a stablecoin (“Avit”).
- October 28, 2020: Avanti received approval for its bank charter pursuant to an 8-0 vote of the Wyoming State Banking Board.
- October 29, 2020: Avanti applied to the Federal Reserve for payment system access.
- March 19, 2021: Avanti completed its Series A fundraising round, bringing its total raised to date to $44 million. That is among the largest capital raises ever completed by a de novo bank applicant in the U.S.
- May 5, 2021: The Federal Reserve Board in Washington, D.C. released proposed new guidelines for applicants for payment system access.
- July 12, 2021: The public comment period on the above new guidelines closed.
- August 5, 2021: Avanti applied to become a Member Bank.
About Avanti: Avanti Financial Group, Inc. is a Wyoming 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 is 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. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
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