The post Custodia, Vantage Expand Pilot Into Live Tokenized Deposit Network for US Banks appeared on BitcoinEthereumNews.com.

In brief Custodia and Vantage have unveiled a live network for tokenized deposits across U.S. banks. The system enables switching between deposits and GENIUS Act–compliant stablecoins. The platform awaits final regulatory approval to start at scale, Custodia CEO Caitlin Long confirmed with Decrypt. Custodia Bank and Vantage Bank Texas have unveiled a live platform for tokenized deposits, expanding their earlier pilot into a nationwide network for U.S. banks. The new platform, announced Thursday, allows participating institutions to issue tokens that represent insured deposits—essentially putting traditional bank money on a blockchain while keeping all the usual protections and regulations in place. That also makes the tokens compliant with U.S. banking laws and the GENIUS Act, which recognizes certain bank-issued stablecoins as deposit instruments rather than securities. How it works  The tokens are like digital dollars that can change form depending on where they are. When they’re held by a participating bank, they are regular tokenized deposits which are fully FCIC-insured and governed by banking rules. But when they move to another institution or wallet, they behave like a stablecoin. The network handles conversions through “a patent-pending protocol involving both an on-chain oracle and off-chain operational controls,” Caitlin Long, founder and CEO of Custodia Bank, told Decrypt. The platform uses Infinant’s APIs and ledger infrastructure to manage the switching between forms. “The key is that the very same token, issued via the same smart contract, can change its obligor and its regulatory status as it moves through its life cycle without redeeming or converting the token,” Long said. Tearing down walls Unlike the earlier proof-of-concept that tested Vantage’s Avit token on Ethereum, the new rollout is designed for real-world transactions. Asked about the infrastructure this is based on, Long said the platform runs on a permissionless network. Three different test transactions…

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Filed under: News - @ October 25, 2025 12:24 am