(BlockBar) Arival Bank, a new financial institution is preparing to open its doors for crypto startups in the U.S. It is founded by two Russians and an American. It is waiting for an International Financial Entity (IFE) license from regulators in Puerto Rico.
San Juan-based Arival is about to kick off an equity crowdfunding campaign. The campaign will be kicking off on two platforms: SeedInvest and Crowdcube in the U.K. The campaign has a goal to raise $3 million.
After learning how slow and reluctant banks are to cater to startups and the independent contractors native to the gig economy, the founders Slava Solodkiy, Igor Pesin, and Jeremy Berger came up with the idea for Arival. In August 2018, Arival had applied for the IFE license. This license would connect the business to the U.S. Federal Reserve system. Arival would join the small number of Puerto Rico-based crypto-friendly banking entities as an IFE.
To be noted, the Federal Reserve Bank of New York halted approval of new accounts for Puerto Rican offshore banks, in February. It has cited concerns about expanded U.S. sanctions against Venezuela. But according to Solodkiy and Berger Arival will only face the Fed account issue when they have their IFE license at hand. They hope the crackdown period will end, while they are waiting for their license.
Arival would serve as a hub for clients to connect to a network of banks and lending marketplaces via a single app, once it is licensed as an IFE. It is also worth noting that in December Arival had started the application process for a banking license in Lithuania. It also has visions to open branches in the U.K., Australia, Dubai, Hong Kong, Japan, and Singapore.
Arival intends to be fully accessible online. It aims to be a totally electronic document flow. There would be no need for clients to go to a physical branch to open an account. According to Solodkiy, some fintech and blockchain startups are planning to work with them. He also said that the company will also offer services for other fintech startups to build up their compliance. He is calling this arrangement “compliance-as-a-service.”