Custodia Bank and Vantage Bank Complete Tokenization of U.S. Dollar Deposits

Custodia Bank and Vantage Bank have successfully tokenized U.S. dollar demand deposits on the Ethereum mainnet.

The banks issued and redeemed Custodia’s Avit stablecoins on Ethereum, signifying a significant advancement in blockchain-based banking innovation.

They executed a series of eight regulated test transactions that included minting, transferring, and redeeming Avit tokens, all conducted under strict U.S. banking compliance, including BSA/AML/OFAC regulations.

Vantage Bank managed fiat reserves and supported traditional banking services (Fedwire/ACH), while Custodia focused on blockchain-related functions such as issuance, custody, and reconciliation through its Avit Management System.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.