Custodia Bank and Vantage Bank Tokenize U.S. Dollar Demand Deposits on Ethereum Mainnet
Custodia Bank and Vantage Bank have successfully completed the tokenization of U.S. dollar demand deposits on the Ethereum mainnet. This groundbreaking achievement represents a significant step forward in blockchain-based banking innovation.
Issuance and Redemption of Avit Stablecoins
Through this collaboration, the banks issued and redeemed Custodia’s Avit stablecoins on the Ethereum mainnet. The process involved a series of eight regulated test transactions, which included minting, transferring, and redeeming Avit tokens while complying with U.S. banking regulations such as BSA/AML/OFAC.
Collaborative Efforts
Vantage Bank managed the fiat reserves and provided traditional banking services such as Fedwire/ACH, while Custodia oversaw blockchain functions including issuance, custody, and reconciliation through its Avit Management System. This seamless collaboration between the two banks ensured the successful tokenization of U.S. dollar demand deposits.
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