Custodia Bank and Vantage Bank Launch Blockchain Platform for Tokenized Deposits
Custodia Bank and Vantage Bank have introduced a blockchain-based platform enabling traditional banks to issue tokenized deposits backed by U.S. dollars. The solution merges Custodia's blockchain with Vantage's Interlace network, offering interoperability for financial institutions.
Tokenized deposits function as digital representations of bank-held funds, combining the efficiency of blockchain with regulatory compliance. Early use cases target cross-border payments, construction disbursements, and supply chain settlements—addressing pain points in traditional finance.
The initiative positions banks to compete with private stablecoins while maintaining custody of customer assets. This institutional-grade infrastructure signals growing convergence between legacy finance and distributed ledger technology.
