<p><span data-contrast="auto">State-chartered digital asset bank Custodia, formerly known as Avanti, has raised $7 million, according to </span><a href="https://sec.report/Document/0001804357-22-000002/primary_doc.xml"><span data-contrast="none">a filing</span></a><span data-contrast="auto"> submitted to the Securities and Exchange Commission.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The startup, which was founded in 2020 by Wall Street veteran <a href="https://twitter.com/CaitlinLong_?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">Caitlin Long</a>, </span><a href="https://www.theblock.co/linked/99497/avanti-raises-series-a"><span data-contrast="none">raised</span></a><span data-contrast="auto"> a $37 million Series A round in March of last year. Its backers include Binance.US, Coinbase Ventures and Lemniscap.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The startup’s <a href="https://custodiabank.com/press/series-a/?rel=outbound">total funding</a> now amounts to $51 million.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The company declined to respond to multiple requests for comment. Investors in the round were not disclosed in the filing.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The date of the first sale for this equity round took place in early October and the firm has a total of 36 investors, according to the filing.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>The path to launching a digital bank</h2> <p><span data-contrast="auto">Custodia is designed to provide real-time settlement finality for U.S.-dollar payments in digital asset transactions, according to the </span><a href="https://custodiabank.com/"><span data-contrast="none">company website</span></a><span data-contrast="auto">.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Custodia </span><a href="https://custodiabank.com/roughstock/"><span data-contrast="none">states</span></a><span data-contrast="auto"> on its website that being referred to as a “crypto bank” is a misnomer because it will not take cryptocurrency deposits on its balance sheets. It will instead provide custody services for digital assets.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">In 2020, the startup </span><a href="https://www.theblock.co/linked/82741/avanti-bank-charter-win-wyoming"><span data-contrast="none">secured</span></a><span data-contrast="auto"> a bank charter from the state of Wyoming to make these banking services possible. The charter means that the firm must comply with regulations such as the Bank Secrecy Act, anti-money laundering laws as well as other rules and regulations.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The funds raised from Custodia in its Series A round were </span><a href="https://www.theblock.co/linked/99497/avanti-raises-series-a"><span data-contrast="none">leveraged</span></a><span data-contrast="auto"> to provide the capital needed to launch the bank as required by regulators.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The bank aimed to launch in the second quarter of this year where it would provide U.S.-dollar deposit accounts for business customers, according to </span><a href="https://custodiabank.com/press/avanti-is-now-custodia-announces-countdown-to-launch-in-q2/"><span data-contrast="none">a February release</span></a><span data-contrast="auto">. However, the bank isn’t yet in operation.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p>&nbsp;</p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>