Vantage Bank and Custodia Launch Tokenized Deposits for U.S. Banks

Community and regional banks across the United States can now access tokenized deposits, a significant advancement in banking technology, through a partnership between Vantage Bank and Custodia. This innovative platform integrates tokenized deposits and stablecoins, enhancing the ability of banks and credit unions to offer digital asset services while maintaining deposit security and compliance.

With the launch on October 23, 2025, the consortium invites banks and credit unions to join a framework that allows for seamless integration of tokenized deposits into traditional online banking environments. The collaboration utilizes Custodia’s bank-grade blockchain platform and Infinant’s Interlace platform to create a patent-protected system designed to enhance security and interoperability.

This solution addresses the challenges posed by fragmented stablecoin platforms. Unlike existing providers, this initiative introduces a single digital token capable of functioning both as a tokenized deposit and a stablecoin. This dual functionality enables consortium members to offer advanced financial products without compromising the stability of their deposits.

The tokenization framework ensures that member banks maintain control over their wallets for both tokenized deposits and stablecoins, while also benefiting from interoperability with other financial institutions. Tokens issued can shift regulatory categories between deposits and stablecoins, ensuring clarity and oversight throughout the transaction process.

Practical Applications

The practical applications of this system have already been demonstrated through pilot programs. These initiatives have included instant cross-border payments for transport companies, milestone-based disbursements in construction, efficient supply chain settlements for manufacturers, and more adaptable payroll solutions in service sectors. Each of these use cases illustrates the potential for this technology to streamline transactions and enhance operational efficiency across various industries.

The first tokenized bank deposits were issued by Vantage Bank and Custodia in March 2025, marking the beginning of a fruitful collaboration. This development follows two years of preparation and testing in a regulated environment. Notably, Custodia holds a unique status as a “permitted payment stablecoin issuer” under the GENIUS Act, positioning consortium members to adopt tokenized deposits and stablecoins while remaining compliant with regulatory standards.

Open Access and Innovation

Emphasizing open access and interoperability, Vantage Bank and Custodia aim to empower community and regional banks. Their objective is to foster innovation without compromising deposit stability or regulatory compliance. This approach reflects a commitment to strengthening financial institutions and better serving communities by providing flexible, secure options.

The platform’s design allows for secure tokenization of deposits, enabling member banks to retain full control of their wallets. This secure environment not only enhances operational stability but also facilitates integration with existing banking systems more efficiently than traditional stablecoin solutions.

Tokens issued within this framework can easily transition between banks, and shift their regulatory status as needed. By keeping transactions within the banking ecosystem, this model minimizes the fragmentation typically seen when integrating traditional banking with the cryptocurrency landscape.

The initiative also tackles the issue of “singleness of money.” By allowing tokenized deposits to interact directly with a unified stablecoin, AvitTM, through a shared smart contract, the project strives to achieve a level of monetary singularity that has not been seen before. No other stablecoin has concurrently issued tokenized bank deposits on a common platform, marking a significant milestone in the evolution of digital banking.

Looking ahead, Vantage Bank and Custodia are poised to redefine how community and regional banks engage with digital assets, ensuring that they remain competitive in an increasingly digital financial landscape.

For further information on this groundbreaking initiative, visit Vantage.Bank.