Catenaa, Wednesday, October 29, 2025-Custodia Bank and Vantage Bank Texas on Thursday launched a live network for tokenized deposits, expanding their pilot to allow US banks to issue blockchain-based digital dollars while maintaining full banking protections.
The system enables deposits to function as traditional insured funds when held at participating banks and as GENIUS Act–compliant stablecoins when moved across institutions or wallets.
Custodia CEO Caitlin Long said the platform employs a patent-pending protocol combining on-chain oracles with off-chain operational controls to manage token conversions seamlessly.
The rollout marks a departure from earlier proofs-of-concept, which tested Vantage’s Avit token on Ethereum, moving now to a live, permissionless network infrastructure.
The platform is designed to be interoperable across multiple blockchains, with Ethereum and Bitcoin support under development.
Experts say the network could create a parallel payments system within US banking, giving smaller institutions efficiency and programmability advantages while preserving Federal Reserve oversight. Dan Dadybayo of Unstoppable Wallet described the system as a compliant settlement layer moving insured dollars at blockchain speed with existing safeguards.
Custodia and Vantage aim to scale once final regulatory approvals are obtained. Multiple banks have already committed to the platform, which could redefine the use of stablecoins and tokenized deposits within regulated financial markets.
