Custodia Bank and Vantage Bank just unveiled a new platform allowing US banks to tokenize customer deposits.
The turnkey solution is designed to bring the dollar-pegged stablecoin Avit directly into the traditional banking system.
“Unlike existing stablecoin providers, which often operate on fragmented platforms, this initiative addresses the challenge of interoperability by introducing a single digital token that can function as both a tokenized deposit and a stablecoin.
This innovation enables consortium member banks and credit unions to extend future-ready financial products to their customers without undermining deposit stability.
Consortium member banks and credit unions will also gain the benefit of the premier patent portfolio pertaining to protocols for tokenizing U.S. dollars on blockchains, which Custodia has been developing since 2020.”
The platform is available to community and regional banks, marking a shift in the world of banking, which has long been cautious about embracing blockchain technology due to regulatory concerns.
The launch builds on the banks’ initial milestones, with the banks initially launching Avit on Ethereum’s blockchain in March of this year.
