A Crypto-Friendly Puerto Rico Bank Is Crowdfunding on Circle's SeedInvest

Founded by two Russians and an American with finance backgrounds, Arival Bank is waiting for an International Financial Entity license from regulators in Puerto Rico before it can launch.

In the meantime, San Juan-based Arival is about to kick off an equity crowdfunding campaign on two platforms: SeedInvest, recently acquired by crypto exchange Circle, and Crowdcube in the U.K. The campaign is scheduled to start in early June with a goal to raise $3 million, SeedInvest associate Samuel Lawson told CoinDesk.

Founders Slava Solodkiy, Igor Pesin and Berger came up with the idea for Arival after learning how slow and reluctant banks are to cater to startups and the independent contractors native to the gig economy.

"Further, by taking a global approach and working to acquire an international banking license, the company fits well into the decentralized crypto model."

This license would connect the business to the U.S. Federal Reserve system but is less onerous to obtain than a U.S. bank charter, which can take a year or more.

For clients, this means "You'll have to be verified once, and after that open with us as many bank accounts as we could provide across different jurisdictions."

As an IFE, Arival would join the small number of Puerto Rico-based crypto-friendly banking entities, including San Juan Mercantile Bank and Trust, recently launched by Wall Street veteran J. Robert Collins Jr.; Medici Bank, led by a descendant of the Renaissance-era Italian banking family; and Noble Bank, known for once working with the troubled stablecoin issuer Tether.

In February, the Federal Reserve Bank of New York halted approval of new accounts for Puerto Rican offshore banks, citing concerns about expanded U.S. sanctions against Venezuela, Reuters reported.

Arival started the application process for a banking license in Lithuania in December.

Once licensed as an IFE, Arival would serve as a hub for clients to connect to a network of banks and lending marketplaces via a single app.