Custodia & Vantage Launch Tokenized Deposit Platform
Custodia Bank and Vantage Bank have launched a blockchain-based tokenized deposit platform that lets banks issue USD-backed deposit tokens and stablecoins directly within their systems. The turnkey solution combines Custodia’s private blockchain with Infinant’s Interlace network and public chains like Ethereum to deliver near-instant, low-cost transfers while preserving traditional deposit security. Tokenized deposits can switch seamlessly between on-chain bank deposits and USD-pegged stablecoins, enhancing liquidity, interoperability and regulatory compliance under the GENIUS Act. Early pilots span cross-border payments, supply chain settlements and payroll solutions, marking a step forward for institutional adoption of digital assets and stablecoins.
Bullish
By integrating with Ethereum and leveraging both private and permissionless networks, the new platform is likely to increase on-chain transactions and demand for ETH as banks pilot tokenized deposits. In the short term, trials by Custodia and Vantage may drive modest ETH usage fees, while long-term institutional adoption of tokenized deposits could boost network activity and transaction volumes. This expansion of blockchain-based banking services signals growing confidence in Ethereum’s infrastructure, suggesting a bullish outlook for ETH’s market demand and price over time.