Custodia Bank and Vantage Bank collaborated to launch the USA's first stablecoin backed by demand deposits on the Ethereum platform.
Details of Custodia and Vantage Bank Project
On March 25, Custodia announced the tokenization of US dollar demand deposits and the issuance of the 'Avit' stablecoin on the Ethereum blockchain using the ERC-20 standard. This event activated a new payment rail in the US banking system, proving that banks can tokenize deposits in a regulatory-compliant manner.
Executives' Perspectives
Custodia CEO Caitlin Long highlighted the project's success in demonstrating the ability to tokenize bank deposits under regulatory frameworks. Vantage Bank CEO Jeff Sinnott called the event a 'pivotal moment in reshaping the financial landscape, showcasing how blockchain and stablecoins can transform payments.'
Significance of Choosing Ethereum Blockchain
Custodia, previously a champion of Bitcoin, chose Ethereum for this project. This decision was well-received by Ethereum supporters, who noted that the blockchain provided the stability needed for the stablecoin's success.
The launch of the Avit stablecoin on Ethereum underlines the growing influence of blockchain technology in finance and highlights potential for further innovations in the banking industry.
