The post Custodia and Vantage have launched a nationwide tokenized deposit platform appeared on BitcoinEthereumNews.com.

Custodia Bank and Vantage Bank Texas have transformed their initial pilot initiative into a nationwide network for banks in the US by introducing a live platform for tokenized deposits. The new platform enables participating banks to create tokens that represent insured deposits. This means they can transfer traditional bank money onto a blockchain while maintaining all the standard protections and complying with regulations. Analysts refer to the new platform as a solution for real-world transactions Sources have acknowledged that Custodia and Vantage’s setup ensures tokens strictly adhere to US banking rules and comply with the GENIUS Act.  This crypto legislation allows specific bank-issued stablecoins to be treated as deposit instruments rather than securities. These tokens imitate the characteristics of digital dollars that can change depending on the location they are situated. For instance, in a participating bank, they act like regular tokenized deposits, completely insured by the FDIC, and follow banking rules. Nonetheless, they function like a stablecoin when they shift to another institution or wallet. During an interview, Caitlin Long, the founder and CEO of Custodia Bank, weighed in on the topic of discussion. Long pointed out that the network handles these changes using a patent-pending protocol that integrates both an on-chain oracle and off-chain operational controls. She also mentioned that the platform utilizes Infinant’s APIs and ledger infrastructure to facilitate conversions between different forms. “The crucial point is that the same token, created through the same smart contract, can change who is responsible for it and its regulatory status as it goes through its life cycle without needing to be redeemed or converted,” the CEO of Custodia Bank explained.  Meanwhile, unlike the previous proof-of-concept that tested Vantage’s Avit token on Ethereum, analysts express that this new version is designed for real-world transactions. Dan Dadybayo calls for efficiency in the…

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Filed under: News - @ October 25, 2025 4:25 am