Custodia & Vantage Launch FDIC-Insured Tokenized Deposits
Custodia Bank and Vantage Bank Texas have launched a production-ready platform for FDIC-insured tokenized deposits. Compliant with the GENIUS Act, the platform uses on-chain oracles and off-chain controls via Infinant’s APIs. These tokenized deposits operate as bank-insured tokens within participating banks and as stablecoins when transferred externally. Early Ethereum trials with Vantage’s AVIT token showed efficient settlement. Bitcoin integration is now underway on the same permissionless network. Multiple U.S. banks and the Federal Reserve will monitor transactions. The system enables faster, programmable interbank payments and nationwide interoperability, marking a major step in modernizing U.S. banking rails and crypto adoption.
Bullish
The launch of FDIC-insured tokenized deposits on Ethereum, with Bitcoin integration upcoming, directly enhances on-chain utility and demand—especially for ETH. In the short term, adoption tests and production rollout drive network usage and may boost transaction fees, providing upward price pressure. Long-term, institutional and interbank support under regulatory compliance fosters sustained blockchain adoption, reinforcing bullish sentiment for Ethereum.