Key Takeaways
- Custodia Bank and Vantage Bank have partnered to introduce a blockchain platform enabling banks to tokenize customer deposits.
- The platform integrates tokenized deposits directly into banks’ core systems while complying with regulations.
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Custodia Bank, a Wyoming-based digital asset bank, has partnered with Vantage Bank, a Texas community bank, to launch a blockchain platform that enables traditional banks to tokenize customer deposits. The turnkey solution allows financial institutions to integrate tokenized deposits directly into their core banking systems while maintaining regulatory compliance.
The platform supports tokenized dollars that can switch between deposit forms and stablecoins as they move between different holders. Banks can now offer customers faster transfers and blockchain compatibility without sacrificing security features of traditional deposits.
The collaboration establishes a consortium structure where member banks can join to access tokenized deposit capabilities. The system operates on permissionless networks like Ethereum, allowing seamless integration with existing online banking environments.
Traditional financial institutions can now incorporate both tokenized deposits and bank-issued stablecoins into their services. The stablecoins are collateralized by real USD and designed to interoperate with tokenized deposits for enhanced transaction flexibility.
