Custodia & Vantage Debut Blockchain Tokenized Deposits
Custodia Bank and Vantage Bank have launched a blockchain-based platform enabling tokenized deposits—digital customer balances held on-chain but fully backed by actual dollars. The solution runs alongside stablecoins to facilitate fast, low-cost transfers without moving funds outside existing banking systems. Each participating bank retains control of its digital wallets and tokens, ensuring compliance with regulations including the GENIUS Act. Hosted on Custodia’s SOC 2 Type II–certified, bank-grade blockchain and integrated with Infinant’s Interlace network, the platform supports pilot use cases such as cross-border payments, supply-chain settlement and flexible payroll. Traders should watch for rising demand for tokenized deposits and partner banks’ settlement tokens, as these developments could boost stablecoin liquidity and on-chain transaction volumes.
Bullish
The news of tokenized deposits and integrated stablecoins on a bank-grade blockchain is likely bullish for stablecoin markets. In the short term, pilot programs in cross-border payments and payroll can drive increased on-chain transfer volumes and stablecoin usage. Long term, wider adoption of tokenized deposits by traditional banks could expand stablecoin liquidity, strengthen blockchain banking infrastructure and attract more institutional capital. These factors point to a positive price impact on stablecoins and related on-chain tokens.