Custodia Bank and Vantage Bank Launch Tokenized Deposits Platform
Custodia Bank and Vantage Bank have introduced a blockchain platform for issuing tokenized deposits. The system allows traditional banks to speed up transactions while protecting customer funds.
The patent-protected platform offers benefits of tokenization to banks and customers. It also prevents deposits from leaving the banking system, ensuring security.
How Tokenized Deposits Work
Tokenized deposits are digital versions of regular bank deposits, backed by real U.S. dollars. The platform uses a single digital token that acts as both a tokenized deposit and a stablecoin. This bridges traditional banking with cryptocurrency.
The system is available to banks of all sizes. They retain full control over digital wallets holding tokenized deposits and GENIUS Act-compliant stablecoins.
The technology combines Custodia’s blockchain with Infinant’s Interlace network for transaction processing. This launch follows Custodia’s earlier milestone as the first U.S. bank to issue tokenized deposits on a permissionless blockchain.
Market Context and Future Use Cases
The tokenized deposits platform competes with private stablecoins, which are valued near $300 billion. Stablecoins received support after the GENIUS Act was signed into law in July 2025. Still, many banks worry that stablecoins offering yields could threaten traditional banking.
The U.S. Treasury estimated in April 2025 that the stablecoin market could reach $2 trillion by 2028. Custodia’s solution aims to help banks remain competitive and reduce risks.
Custodia is testing its tokenization technology across sectors like cross-border payments, construction payouts, supply chain settlements, and payroll systems.
For more details, see the official press release.
