WASHINGTON, Oct. 24, 2025 — Two U.S. banks, Custodia Bank and Vantage Bank, have launched a blockchain-powered platform that allows traditional banks to issue tokenized deposits and payment stablecoins directly within their existing online banking systems.
The new platform, developed in collaboration between Wyoming-based Custodia Bank and Texas-based Vantage Bank, offers a “turnkey, compliant solution” that enables financial institutions to safely integrate blockchain technology without losing control of their deposits, according to a press release issued Wednesday.
Tokenized Deposits Meet Regulatory Compliance
The system is built on a patent-protected framework that lets banks issue digital tokens representing real deposits. These tokens can function as both tokenized deposits and stablecoins, giving banks a way to leverage blockchain’s speed, transparency, and efficiency while staying fully compliant with regulatory requirements.
Custodia said the wallets connected to the system are hosted on its bank-grade blockchain infrastructure, which has been awarded SOC 2 Type II certification — a cybersecurity standard developed by the American Institute of Certified Public Accountants (AICPA).
“By ensuring tokens remain within the banking environment, this model helps preserve the advantages of tokenization while encouraging deposits to remain in, or return to, the issuing institution,” the statement read.
Built for Banks of All Sizes
The platform, which integrates Infinant’s Interlace network, is designed to support institutions of any size, from community banks to national lenders. It allows participating members to “securely tokenize deposits while maintaining full control of their own wallet”, Custodia and Vantage said.
Vantage Bank also announced the formation of a banking consortium, inviting other banks and credit unions to join the initiative and pilot the tokenization technology within their own systems.
Custodia is already a permitted payment stablecoin issuer under the GENIUS Act, giving it a regulatory foundation to expand this technology nationwide.
Pilot Programs Show Real-World Use Cases
According to the release, the blockchain-based solution has been under development since early 2023 and has already been tested through pilot programs involving:
- Cross-border payments,
- Supply chain settlements for manufacturers, and
- Flexible payroll systems for service-sector employers.
The early pilots reportedly demonstrated the ability to speed up transactions, reduce settlement costs, and improve traceability — areas where traditional payment systems have long lagged.
Regulatory Tensions Around Stablecoins
The launch comes amid growing tension between U.S. banks and crypto issuers over stablecoin regulation.
Earlier this year, several major banking associations — including the American Bankers Association (ABA) and the Bank Policy Institute (BPI) — urged Congress to amend the GENIUS Stablecoin Act, warning that its current language might allow crypto platforms to offer yield-like incentives tied to stablecoin holdings, potentially drawing deposits away from the traditional banking system.
While the law prohibits stablecoin issuers from paying interest directly, banks argue it does not explicitly prevent exchanges or intermediaries from offering rewards or bonuses.
In response, Coinbase dismissed those warnings, saying banks are primarily trying to protect their multi-billion-dollar payment processing revenues, rather than addressing genuine risks to consumers.
The Broader Shift
Custodia and Vantage’s collaboration highlights how some U.S. banks are beginning to embrace blockchain infrastructure — not as competition, but as an extension of their core banking operations.
By combining regulatory-grade compliance with blockchain’s efficiency, the initiative could become a blueprint for how banks adopt tokenized deposits and stablecoins without losing oversight or customer trust.
