Access to tokenized deposits is now available to community and regional banks nationwide with Custodia’s bank-grade blockchain platform and Infinant’s Interlace platform. Vantage Bank, working in partnership with Custodia, invites banks and credit unions to join the consortium, which has developed a turnkey accretive solution that integrates tokenized deposits and stablecoins directly into the traditional online banking environment. The patent-protected framework is designed to provide institutions and their customers with the efficiencies and security of tokenization while safeguarding core deposits from the risk of disintermediation.
This initiative introduces a single digital token that can function as both a tokenized deposit and a stablecoin. This innovation enables consortium member banks and credit unions to extend future-ready financial products to their customers without undermining deposit stability. Consortium member banks and credit unions will also gain the benefit of the premier patent portfolio pertaining to protocols for tokenizing U.S. dollars on blockchains, which Custodia has been developing since 2020.
The platform is open to institutions of all sizes. Member banks maintain control of their wallets for tokenized deposits and stablecoins while gaining the benefit of interoperability with other financial institutions. Tokens issued under the system can shift between regulatory categories—deposit and stablecoin—while preserving clear oversight at every stage.
Practical applications have already been demonstrated. For example, early pilot programs have included instant cross-border payments for transportation companies, milestone-based disbursements in construction, supply chain settlement for manufacturers, and more flexible payroll options in service industries. These use cases highlight the system’s potential to streamline financial transactions and create efficiencies across multiple sectors.
Vantage Bank and Custodia issued the first tokenized bank deposits together in March. Since then, the two institutions have worked through a series of additional test transactions in a regulated environment.
Because of their early collaboration, Custodia said it is a grandfathered “permitted payment stablecoin issuer” under the GENIUS Act, giving consortium member banks an early opportunity to adopt tokenized deposits and stablecoins while remaining fully compliant.
The platform allows any consortium member bank to tokenize deposits while maintaining full control of its own wallet for both tokenized deposits and payment stablecoins, which are hosted by Custodia. At the same time, the framework supports interoperability across participating institutions, enabling a higher level of security, operational stability, and ease of integration than conventional stablecoin solutions.
A token issued on the system can change hands across banks, shift between a tokenized deposit and a GENIUS Act–compliant stablecoin, and adjust to the appropriate regulator, with responsibilities clearly delineated at each stage. This approach reduces the fragmentation and friction often seen when funds move between traditional banking and the crypto ecosystem—flows that historically tend to tilt toward crypto during strong market cycles. By ensuring tokens remain within the banking environment, the model helps preserve the advantages of tokenization while encouraging deposits to remain in, or return to, the issuing institution.
The framework also addresses concerns about the “singleness of money.” By allowing tokenized deposits to interact directly with one stablecoin—Avit—under a unified system and shared smart contract, the initiative aims to achieve monetary singularity. At present, no other stablecoin has reached this objective, as none have been issued concurrently with tokenized bank deposits on a common platform.