Custodia and Vantage Bank Launch Tokenized Deposit Platform Bridging Traditional Banking and Crypto
Custodia Bank and Vantage Bank have introduced a blockchain-based platform enabling traditional banks to issue tokenized deposits. The patent-protected system aims to combine the efficiency of blockchain with the safety of traditional banking, preventing deposit disintermediation. Tokenized deposits, digital representations of USD-backed bank deposits on a blockchain, function as both deposit tokens and stablecoins.
The solution offers a turnkey approach for banks to integrate tokenized deposits and stablecoins directly into existing online banking environments. This MOVE signals growing institutional adoption of blockchain technology to enhance transaction speed while maintaining regulatory compliance and customer fund security.