Explore the Avit, a new bank-issued digital asset from Avanti

About a month ago Avanti CEO Caitlin Long told the world about a new digital asset called Avit but didn’t provide any details then. She just shared information that the company Avanti partnered with Blockstream in a new project. Caitlin also mentioned that the project was blockchain-based and the asset had no analog in the crypto world.
Today the company threw more light onto that project.
A digital asset can be exchanged into dollars but not pegged to USD as in the case with stablecoins. It’s a kind of programmable electronic cash that can’t be referred to security tokens. It also doesn’t represent invested funds that bring revenues to their holders.
The Avit is an innovative digital asset that will be used without negative consequences for users due to its legal status. It won’t be a “property” like stablecoins (this is how they are perceived by the IRS). The accountants will consider it the equivalent of cash.
The Avit will refer to blockchain-based bank money with different functionality compared to digital USD or central bank digital currencies.
The Liquid network is going to be used for issuance of the Avit. It’s possible to trade digital assets on Liquid in atomic swaps or smart contracts enabling exchange of assets without intermediaries.
The bank is also going to release the coin on the Ethereum platform so it have all properties of an ERC-20 coin. Besides, the company wants to back other highly-demanded protocols to provide a good choice for customers.
It’s also worth mentioning that the asset will be 100% backed by a reserve of traditional assets. According to Avanti plans, a digital asset will represent something like a CD (certificate of deposit) or something else to be redeemed wherever users want against the USD.

Be the first to comment

Leave a Reply

Your email address will not be published.