Bank / Credit Union

Custodia Bank partners with Vantage Bank to launch stablecoin

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March 27, 2025

Custodia Bank has partnered with Vantage Bank to launch a stablecoin on a blockchain. The banks created Avit tokens on Ethereum using the ERC-20 standard, according to a press release.

The process was done in eight stages, including transacting the Avit token outside the banking system and then transferring it to Custodia Bank to redeem into U.S. dollar. The process created a U.S. dollar payment rail, while complying with all regulations.

"We broke ground on the legal/regulatory front, proving that U.S. banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner," Caitlin Long, CEO of Custodia Bank, said in the release. "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."

"This event marks a pivotal moment in reshaping the financial landscape, demonstrating how blockchain and stablecoins can revolutionize payments," Jeff Sinnot, president and CEO of Vantage Bank, said in the release. "By executing this transaction, we're empowering banks to lead responsibly in cross-border modernization, while also leveraging the strength of the U.S. Dollar and demonstrating regulators' support for responsible innovation."