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: