Custodia Bank and Vantage Bank, both cryptocurrency-friendly banks, have launched a blockchain solution that allows traditional banks to issue tokenized deposits that can work in conjunction with stablecoins.
The two banks stated in a Thursday announcement that the solution enables banks to conduct near-instant, low-cost transactions with other banks in an interoperable manner while retaining customer deposits.
Tokenized deposits are digital versions of bank deposits issued on the blockchain, representing real dollars held by the bank.
The initiative aims to address the interoperability issue between cryptocurrencies and traditional banking by introducing a single digital token that can serve both as a tokenized deposit and a stablecoin.
The platform is open to banks of all sizes, allowing them to maintain control over wallets containing tokenized deposits and stablecoins compliant with the GENIUS Act.
The solution leverages Custodia's bank-dedicated blockchain and the Interlace network of payment platform Infinant. This comes seven months after Custodia partnered with Vantage to become the first bank in the U.S. to issue tokenized deposits on a permissionless blockchain.
The current cryptocurrency bull market is primarily driven by institutional adoption, with banks and traditional financial companies employing a wide range of strategies to engage in the cryptocurrency space.
One area of adoption is stablecoins, a market now valued at $300 billion, which received a significant boost after U.S. President Donald Trump signed the GENIUS Act in July.
However, banks have expressed concerns to regulators that the interest and yields offered by stablecoin issuers and their affiliates could undermine the traditional banking system.
The U.S. Treasury estimated in April that the stablecoin market could reach $2 trillion by 2028, potentially leading to a $6.6 trillion outflow of bank deposits.
For banks, tokenized deposits can help mitigate these outflows and maintain their competitive edge as the banking industry increasingly shifts towards digital solutions.
Custodia has already been running early pilot projects utilizing its dollar tokenization technology, including cross-border payments for transportation companies and milestone-based funding disbursements in the construction industry.
The company noted that it also supports supply chain settlements for manufacturers and more flexible wage options for the service industry.
Related: RedStone brings CFTC-regulated prediction market data to DeFi
Original article: “Cryptocurrency-friendly banks Custodia and Vantage launch tokenized deposit platform”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
