Custodia and Vantage Bank partner for ‘first bank-issued stablecoin’

Custodia Bank said it partnered with Vantage Bank to tokenize US dollar demand deposits and issue them on Ethereum.

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 via the ERC-20 token standard.

“A new US dollar payment rail has now been activated inside the US banking system,” Custodia added.

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