Custodia and Vantage Bank to Issue America’s First Bank-issued Stablecoin
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Custodia Bank has collaborated with Vantage Bank to create what they claim is “America’s first-ever bank-issued stablecoin” on a permissionless blockchain.
On March 25, Custodia announced that it had tokenized US dollar demand deposits, enabling the issuance, transfer, and redemption of the stablecoin “Avit” on Ethereum using the ERC-20 token standard.
Custodia stated:
“A new US dollar payment rail has now been activated within the US banking system.”
Custodia CEO Caitlin Long commented:
“We’ve set a precedent on the legal and regulatory front, proving that US banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily compliant manner.”
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