1/ Unlike other
#Bitcoin
custodians,
@custodiabank
uses a segregated custody model that allows you to validate your address balances **on-chain.**
Did you also know that Custodia's
#Bitcoin
custody setup allows you to manage your individual
#UTXOs
?🧐👇
AVANTI IS OFFICIALLY A BANK! Our charter & business plan were approved 8-0 today, incl.
#Avit
(a tokenized US dollar, which we announced we'll issue initially on
#Liquid
(
#Bitcoin
sidechain) &
#Ethereum
. Open for commercial customers early Q1. More here:
Our CEO,
@CaitlinLong_
, was just named one of three Innovators of the Year 2023 in the US banking industry by
@AmerBanker
, selected by American Banker as one of the top three from the 20 total named Innovators of the Year 2023. Congrats to all!
1/ BIG NEWS!! Custodia’s
#Bitcoin
custody platform recently went live. Custodia is a *BANK* built by Bitcoiners & we offer segregated (not omnibus) custody accounts on our custom-built Bitcoin custody platform. Our whitepaper describes how we're different:
1/
@CustodiaBank
is live!
Last month, we began to serve external customers. For helping us reach this milestone, special thanks go to our team, our investors and all our partners--especially in the face of regulatory pressure on the
#digitalasset
industry.
.
@custodiabank
CEO
@CaitlinLong_
on what makes us different: "Our design is to be non-leveraged. It's the polar opposite of all the mess that I've been warning about for the last few years that is creating the train wreck in the [digital asset] industry." h/t
@CNBC
Hear our CEO,
@CaitlinLong_
, tell
@CNBC
why
@custodiabank
's business is still going strong, why it's not giving up on a Fed master account, and how its business model is designed to remove
#Herstatt
risk from the traditional banking system.👇
NEWS:
@AvantiBT
announces completion of our Series A capital raise, bringing the total raised to date to $44m as we prepare for digital asset bank launch. Round was upsized twice due to market demand. We're hiring (bank ops, finance, engineering)-join us!
2/ Services now available in some (but not all) US states include US dollar deposits & US government money market fund services. Stay tuned:
#Bitcoin
custody is pending launch, offering customer protections inherent to a bank that are superior to those offered by non-banks.
3/ As a non-lending bank, we offer integrated Bitcoin custody & US dollar services (Not FDIC Insured) under one roof, which simplifies user operations and reduces risk. We recently earned approval from the Wyoming Division of Banking to go live with our
#Bitcoin
custody service.
Avanti announces it will shortly apply for FDIC insurance, acting quickly to test the viability of the path laid out by the President’s Working Group for digital asset companies that are outside the universe of legacy banks that are already FDIC-insured.
STATEMENT ON
@BIS_org
PROPOSED BANK CAPITAL REQUIREMENTS FOR DIGITAL ASSETS, co-authored by our CEO,
@CaitlinLong_
& our CTO, Rich Radnay. Full comment letter available here:
8/ We extend special thanks to all of our supporters and encourage you to stay in touch via info
@custodiabank
.com. Please watch for updates as we roll out new services and new states. Let’s do this!
4/ Since we built our
#Bitcoin
custody platform in-house, we’re especially grateful to those willing to help us by providing user feedback.
We look forward to learning about how we can work and grow together! Get in touch!
2/ Our
#Bitcoin
custody service is purpose-built for businesses: fiduciaries, investment advisers, fund managers & corporate treasurers. We’re currently offering some of our services in various US states. The best way to learn more is to reach out to us:
@jeffjohnroberts
@CaitlinLong_
Yes, the above is true, but
@CustodiaBank
survived the hit & figured out how to get operating while waiting for the Court's decision on the legality of the Fed's denial. We are open. Check us out!
3/ As a reminder,
@CustodiaBank
is initially serving US business customers only (not individuals)--and we are not authorized to operate in all US states yet. Please check our website for important information and disclosures. We are opening slowly & carefully.
WELCOME
@lisa_hough_
! Lisa brings her decade+ career in energy trading to
@custodiabank
, where she will help the US
#Bitcoin
& energy industries meet their banking & bitcoin custody needs, including integrations w/ their banking & capital markets providers
Thankfully the BIS today backed off its proposal to penalize banks' use of permissionless
#blockchains
. Our CEO & CTO submitted a comment letter on this in October, explaining why blocking banks from using this tech cld obsolete banks. Thank you
@BIS_org
AVANTI WELCOMES TO OUR ADVISORY BOARD:
@ChristopherA
: internet pioneer, co-creator TLS security standard
@BobMcElrath
: former lead Fidelity Digital
#blockchain
architect
Katie Cox: 30-yr Federal Reserve bank regulator, former Manager of M&A section in DC
7/ “We're grateful to our partners, who appreciate our approach of complying with banking laws & regs; to Wyoming for its enabling laws; to our team & investors; & to the law-abiding
#digitalasset
industry,” said CEO
@CaitlinLong_
, named by
@AmerBanker
a top 3 Innovator of 2023.
6/ A new breed of bank has arrived for the US
#digitalasset
industry-one that’s tech-forward, treats customers w/ the respect you deserve & has a regional bank-style risk mgmt program. We took the hard path of becoming a regulated bank bc it's the right thing to do for customers!
5/ It's been quite a journey for Custodia. In Dec we told the Fed we'd complete a task list and--even tho no longer required--we still did it. Since then we passed myriad independent reviews, built new partnerships & built a new service to meet a market need. And now we’re live!
4/ Many friends have asked us how they can help
@CustodiaBank
succeed. One way is to do business with us once we’re authorized in your state & if you’re approved to open an account. Please contact info
@custodiabank
.com if you’re interested in talking.
IS IT TRUE?? Yes, it’s true:
@CustodiaBank
really did **propose** to the Fed to hold $1.08 in a Fed master account for every $1.00 of customer USD deposits during our first 3 years of operating with a Fed master account.
Learn more here:
AVANTI IS HIRING! Interested in joining the first digital asset custody bank in the US built on the backbone of a modern core banking platform? Several open roles--compliance associate + engineering & product roles too. Join us!🤠
ANNOUNCING AVANTI'S LEADERSHIP TEAM! It's a group of all-star co-founders, each w/ significant prior experience in regulated financial institutions. The need for Avanti has never been clearer & we're full-speed ahead!🤠
@Blockstream
@kanzure
@zshimko
NEWS! ex-Treasurer of
@Ford
, Neil Schloss, joins
@AvantiBT
as advisor, along w/ Ford's ex-head of treasury IT, Bob Cullinan & ex-
@blackrock
Managing Director Tim Keefe. "I see Avanti’s solutions as potential game changers for corporate treasurers."-Schloss
While most
#bitcoin
custodians provide customers w/ a pro rata share of an omnibus Bitcoin custody account,
@CustodiaBank
provides customers w/ full segregation of Bitcoin. Custodia custodies customer
#UTXOs
! Whitepaper on our segregated Bitcoin custody:
1/ Last week, we caught up with
@PrestonPysh
to discuss
@CustodiaBank
's segregated
#Bitcoin
custody service. Check it out on your preferred podcast app to learn more about the latest developments for Custodia. Here’s a 🧵about what we covered👇
ATTENTION BANKS that want to enter
#bitcoin
&
#crypto
custody in the U.S., now that the SEC is granting "exceptions" to
#SAB121
for "several large banks" (per Bloomberg). Here are thoughts on the buy vs build vs rent decision for banks looking to enter:
Join the
@AvantiBT
team and help build a future where all banks support
#bitcoin
&
#crypto
+ offer *meaningful* API capabilities to tech-savvy customers. Job postings below:
1/ AVANTI KICKED OFF A HIRING BLITZ as we move toward launch, posting jobs in finance, bank operations, engineering, ISO & sys admin. We see a future where all banks support
#crypto
& offer *meaningful* API capabilities to tech-savvy customers. Join our team & help build it!🤠
Happy 2024! Last year, did you read our whitepaper about our Custody product and the segregated vs. the omnibus model?
if you're curious but haven't read it yet, here's a short thread. 🧵
INTRODUCING
#Avit
, a new US dollar payment solution for use by traders, investors and corporate treasurers when they desire real-time settlement--and
@AvantiBT
's accelerated timetable for opening. Learn more here:
Companies have been adding
#bitcoin
to balance sheets. If you're among them, trust our robust legal protections & custody your
#bitcoin
with
@CustodiaBank
. Your Bitcoin will be stored in a segregated wallet with the protections of
#Wyoming
’s bailment laws:
Institutional investors are among customers that trust
@custodiabank
to provide safe & secure
#bitcoin
custody. In addition to bank-level security, they value
#Wyoming
’s bitcoin-friendly laws, our bank regulatory regime & address-level asset segregation.
Avanti Statement on its Application to Become a Federal Reserve Member Bank:
Avanti today confirmed press reports that it filed an application to become a Member Bank of the Federal Reserve on August 5, 2021.
New team members!
* Gary Blumenthal, ex-managing director at
@UBS
& COO of Grasshopper Bank, as Ops Senior Advisor;
* Mike Borges CPA, ex-Controller of Beneficial, as CFO;
* Mike Coleman, ex-CFO & head of ops & compliance at FirsTier, as Head of Bank Ops
New Fed Policies And Procedural Abnormalities: There are leadership lessons in the Fed's 86-page Custodia order, released Friday, that may help the law-abiding
#digitalasset
industry forge a path forward.
@custodiabank
is continuing its work to break thru.
#Bitcoin2024
is next week & the
@CustodiaBank
team is excited to join Bitcoiners there! Make sure to see
@CaitlinLong_
's talks & catch up with our onsite team. Please see or contact us at info
@custodiabank
.com. (Material is for informational purposes only)
3/ Between the
#halving
and
#Runes
launch,
#Bitcoin
network fees are back to all time highs and it’s critical to have a strategy to manage your
#UTXOs
and reduce fee expenditure.
2/ Currently, you can select which UTXOs you want to protect. We’re working on a full set of
#Bitcoin
#UTXO
management features, making UTXO hygiene even easier. This is especially useful in high fee environments & for smaller UTXOs (eg, mining rewards as part of a pool payout).
7/
56:45 How to identify when ETFs might be having problems
59:10 Looking forward to a potential world where
#ETF
holders might someday redeem shares for real
#Bitcoin
held in custody by
@custodiabank
Check out !
END
Our custody model is like a single tree. It's easy to know which leaves and branches belong to whom because it's still there, standing strong. There's no need to process that tree into lumber because you can simply count the leaves.
If you're interested in learning more about Bitcoin custody, banking services, or money market funds, please fill out this form and we'll get back to you.
We'd love to chat!
6/
45:00 Consequences of “bad money” crowding out “good money”
47:11 Tokenization of equities & digitalization of corporate stock; Caitlin’s background working w/ the State of Delaware in 2016-17
52:38 Inefficiency in the mkt & potential issues with trading
#Bitcoin
#ETFs
To make this easier to understand, let's use a metaphor: think of a forest, then imagine a single tree.
In bankruptcy, the court treats that forest as harvested lumber. Even if you owned one tree or several, it's difficult to know which boards came from your tree vs. others.
Most of the industry offers omnibus custody. Most also use the legal framework of a trust. In 2023 we saw what can happen when a trust company fails--customers can face haircuts due to preferences, delays & general uncertainties of bankruptcy.
5/
34:30 Stablecoins - risk (“speed of light” vs. legacy “Oregon Trail” speed)
37:00 Wes’s perspective on
#stablecoins
- fractional reserve vs. full reserve
38:00 TGA draw down - Caitlin’s take on
#BTFP
ending in March
42:30 Consolidation of the banking industry
4/
31:00 Potential for
#BTC
lending through an outside lender (
@custodiabank
isn't the lender)
32:00 What we are excited about in the next few years (Layer 2s, Lightning)
33:00 Approved at charter for ability to do
#stablecoin
33:20 Cantor as custodian of Tether’s T-bills
2/
2:40
#Bitcoin
#ETF
#Custody
3:30
#Bailment
discussion, what makes
@custodiabank
(as a bank) different
7:45 A theory about why ETFs concentrate custody at Coinbase (for now)
9:20 Why Custodia uses segregated custody & custodies
#UTXOs
11:00 Why ETFs aren’t using Custodia
@jamesob
@russmonk
Yep, interesting perspective Russ. Fiat on/off ramps that give customers the freedom to choose where to store value are proving valuable to the growth of the ecosystem, indeed. Thanks