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The crypto-friendly Custodia Bank has worked with Vantage Bank to complete what the two firms say is “America’s first-ever bank-issued stablecoin” on a permissionless blockchain.
Custodia said on March 25 that it tokenized US dollar demand deposits and facilitated the issuance, transfer and redemption of the stablecoin “Avit” on Ethereum (
$0.00 ) via the ERC-20 token standard.
“A new US dollar payment rail has now been activated inside the US banking system,” Custodia added.
“We broke ground on the legal/regulatory front, proving that US banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner,” said Custodia CEO Caitlin Long.
Source: Caitlin Long
Vantage Bank CEO and President Jeff Sinnott said the event was a “pivotal moment in reshaping the financial landscape, demonstrating how blockchain and stablecoins can revolutionize payments.”
In a series of posts on X, Long explained that the Avit stablecoin was a “real dollar” and not a “synthetic” dollar, as Federal Reserve Board Governor Christopher Waller called stablecoins in a Feb. 12 speech.
“Real” US dollars, Long explained, can only be issued by the Federal Reserve and a few legally authorized entities, including Custodia Bank. She added that Avit is a “real dollar” as it tokenizes a bank’s demand deposit — funds that customers can withdraw on-demand, such as money in a checking account.
Ethereum ( $0.00 ) backers cheer Custodia’s chain choice
Custodia has historically championed Bitcoin (
$0.00 ) , and Ethereum ( $0.00 ) advocates were quick to note that the bank chose Ethereum ( $0.00 ) for the stablecoin.
“ETH fixed this. Bitcoin ( $0.00 ) couldn’t,” wrote Ethereum ( $0.00 ) advocate Evan Van Ness. Ethereum ( $0.00 ) educator Anthony Sassano also posted to make clear the “permissionless blockchain” Custodia referred to in its announcement.
“Just in case it wasn’t obvious, this is built on Ethereum ( $0.00 ) .”
Source: Matthew Sigel
Related: Ethereum ( $0.00 ) poised for record highs in Q1 2025, analysts predict
Ethereum ( $0.00 ) secures over $0.00 ) " rel="null" target="null" text="null" title="null">$125.8 billion worth of stablecoins on its network, nearly doubling the second-place Tron blockchain at $64.8 billion, DefiLlama data shows.
Ethereum ( $0.00 ) also tokenizes over $3.6 billion worth of US Treasury bills — seven times more than its next competitor, Stellar, at $465.7 million, according to RWA.xyz data.
Magazine: Comeback 2025: Is Ethereum ( $0.00 ) poised to catch up with Bitcoin ( $0.00 ) and Solana?
