Bitcoins and dollars are like oil and water—but financier Caitlin Long says she can blend them inside one novel institution domiciled in Wyoming
ight years ago, Caitlin Long was a card-carrying member of the financial establishment. As head of Morgan Stanley’s pension advisory group, she oversaw the retirement funds for dozens of employers. The dust from the impact of the Great Recession, which wiped out billions of dollars in market value from her clients, was just beginning to settle.
In spite of bitcoin’s promise to let investors own their own assets, Long trusted the exchange with her password, and when it lost $500 million a year later, some of her investment vanished too. Not long after, a client of hers, a pension fund for 30,000 people had a similar experience. She discovered that several billion dollars in bonds listed on the account statement weren’t available for sale. While Mt.
Long, 50, is the daughter of a professor of electrical engineering and an elementary school teacher who taught the children of miners. She earned a bachelor’s degree in political economy at the University of Wyoming, which she proudly declares has been “bucking the system since 1866.” As an undergrad, she joined in the state of Wyoming’s fight against a federal push to raise the legal drinking age.
This year Long cofounded an enterprise that aims to get the first of those charters. If all goes according to plan, Avanti Bank & Trust will open up sometime next year, with an office in Cheyenne and the right to do business in at least 40 states. Part bitcoin custodian, part traditional bank, Avanti aims to be able to take custody of cryptocurrencies the way exchanges like Coinbase do while also holding dollars on deposit at the Federal Reserve.
already in the works. “We’re moving to a financial system, where solvency is really going to matter again,” she says. “And provably solvent financial institutions are ultimately going to win in the marketplace.”As a result, Long thinks that banks like Avanti, that don’t lend out depositors’ money, could prove attractive even to clients that don’t deal in crypto. Instead of making money by lending money, Long says, Avanti will charge fees for services.
Perhaps the largest obstacle to Avanti’s success is technology. Bridging a crypto trust to a U.S. bank, and then connecting that bank directly to the Federal Reserve, is no small feat. While Long and her cofounders write the state charter application, chief technology officer Bryan Bishop is hard at work on how to securely link Avanti to the Fed and to repositories of cryptocurrency.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Latest: U.S. accused of 'wild west methods' to gain PPEA German official accused the United States of using 'wild west methods' to obtain personal protective equipment. The claim came after a delivery of face masks intended for Berlin police was diverted to the U.S.
Read more »
US coronavirus supply spree sparks outrage among alliesOrder of 200,000 Germany-bound masks from a 3M factory in China “confiscated” in Bangkok, said Berlin Secretary of Interior Geisel, calling it an “act of modern piracy.' Canada's Trudeau calls US blockade of equipment a mistake that could backfire.
Read more »
US 'swooped' on masks at Bangkok airport – German officialBerlin's state minister of the interior, Andreas Geisel, accuses Washington of 'modern-day piracy' after 200,000 highly sought-after FFP2 masks destined for use by Berlin police were 'confiscated' in Thai capital.
Read more »
Colbie Caillat & Justin Young Break UpGone West’s Colbie Caillat and Justin Young have ended their relationship.
Read more »
Joe Gorga Says Teresa's Divorce Paperwork Is 'Almost Done,' Reveals Whether She's DatingJoe Gorga sounds off on his sister's divorce from Joe Giudice, before Melissa reveals her reaction to Danielle Staub's RHONJ reunion demands.
Read more »