Custodia and Vantage Launch Nationwide Tokenized Deposit Network
- Custodia Bank and Vantage Bank Texas have launched a live platform for tokenized deposits across U.S. banks.
- The platform allows institutions to issue tokens representing insured deposits, compliant with U.S. banking laws and the GENIUS Act.
- Tokens can switch between being stablecoins and regular deposits depending on their location.
- The system uses a patent-pending protocol involving both an on-chain oracle and off-chain controls for conversions.
- Platform awaits final regulatory approval to operate at scale, with multiple banks already committed.
Custodia and Vantage’s new network enables U.S. banks to tokenize deposits, allowing seamless transitions between traditional bank money and stablecoins while adhering to legal standards. This initiative could enhance efficiency in smaller financial institutions by providing a compliant blockchain-based settlement layer.
The platform’s ability to transform tokens’ regulatory status without redemption or conversion marks a significant step toward integrating blockchain technology into mainstream banking operations. (Source)
