Custodia and Vantage Bank Successfully Tokenize U.S. Dollar Deposits on Ethereum
Custodia Bank and Vantage Bank have taken a major step in bridging traditional finance with blockchain by tokenizing U.S. dollar demand deposits on the Ethereum mainnet.
As part of the initiative, the banks issued and redeemed Custodia’s Avit stablecoin on Ethereum, marking a key development in blockchain-powered banking solutions.
To ensure compliance with strict U.S. banking regulations—including BSA, AML, and OFAC guidelines—the institutions conducted eight test transactions. These transactions covered the full Avit lifecycle, from minting and transferring to redemption, all under a regulated framework.
Vantage Bank handled the fiat reserves and processed traditional transactions through Fedwire and ACH, while Custodia managed blockchain operations, including issuance, custody, and reconciliation, via its Avit Management System.
This achievement underscores the potential of tokenized banking assets and highlights the growing role of blockchain in secure, regulated financial services.
