Custodia Bank and Vantage Bank have revealed the “first ever” tokenization of dollar-based demand deposits.
Custodia Bank is a digital asset bank based in Wyoming, taking advantage of the state’s special purpose depository institutions (SPDIs) law.
Vantage Bank is a bank based in Texas that is a forward-thinking institution that has recognized the benefits of blockchain technology. Via X, Vantage said they are the first to process an on chain trade between banks on Alphaledger.
Vantage Bank is proud to lead in financial innovation—we were the first to process an on-chain trade between banks on Alphaledger, and this week, another momentous first! We partnered with Custodia Bank to issue the first U.S. bank-issued stablecoin on a permissionless…
— Vantage Bank (@Vantage_Bank) March 26, 2025
The two firms said they are issuing, transferring, and redeeming Avit stablecoins on Ethereum for a bank customer. The goal is to benefit from greater efficiencies, including speedy transfers and lower costs within a secure and regulated environment.
The two banks noted they complied with all applicable bank regulations, including AML and BSA rules.
Custodia Bank’s CEO, Caitlin Long, said they broke ground on the legal front with tokenized demand deposits on a permissionless blockchain.
“Custodia looks forward to the reversal of U.S. regulatory obstacles that have stymied stablecoin innovation in recent years, so that American consumers can benefit from the substantial network effects and global reach of permissionless blockchain technologies.”
