Custodia Bank has issued the Avit stablecoin on the Ethereum blockchain in collaboration with Vantage Bank, marking a new direction in the banking industry.
Collaboration with Vantage Bank
Custodia Bank, along with Vantage Bank, successfully tokenized dollar deposits using the Avit stablecoin. The issuance process was conducted in eight stages, with Custodia Bank managing blockchain operations and custody, while Vantage Bank handled FedWire/ACH services and fiat reserves control.
Regulatory Breakthroughs and Prospects
According to Custodia Bank CEO Caitlin Long, this project marked the first instance of a bank-issued stablecoin on a permissionless blockchain, proving the possibility of deposit tokenization in a regulatory-compliant manner. As regulators work on stablecoin industry norms, Custodia Bank looks forward to the lifting of restrictions and the increased accessibility of blockchain technologies.
Growing Stablecoin Market
The stablecoin industry remains a key focus in the crypto community, especially with the GENIUS Act. Once legislation is enacted, it is expected that many new stablecoin issuers will emerge.
The introduction of Avit by Custodia Bank paves the way for banking innovation through stablecoins, contributing to regulation and broader usage of blockchain in the financial sector.
