US bank Avanti will work with bitcoin instead of dollars
The financial institution will begin operating in October of this year in the United States
US digital bank Avanti announced that it is ready to transact with its own digital asset called Avit, an asset built on a bitcoin sidechain. The entity will not safeguard dollars.
Avit will be reserved for institutional merchants and corporate treasurers only. As reported by the Avanti website, there will be no delayed settlement and chargeback problems with traditional payment systems.
Even though Avit will be backed by traditional US assets, it refuses to consider itself as a stablecoin or even a cryptocurrency but as a new digital asset.
Stefan Loesch, director of tokenization of the company eFractio, said that Avit can be converted into a dollar equivalent if the bank puts the medium of exchange. If that happens, Avit would function as a certificate of deposit that could be exchanged for dollars at any time.
For its part, the digital bank considers that its institutional mission is to become “a compatible bridge with the payment system in US dollars and a custodian of digital assets that can comply with the strictest standards of institutional custody.”
K.Villarroel
Source: criptonoticias
