Custodia collaborates with Vantage Bank to launch the "first bank-issued stablecoin"

Custodia Bank has collaborated with Vantage Bank to complete what the two companies call "the first stablecoin issued by a bank in the United States" on a permissionless blockchain.

On March 25, Custodia stated that it had tokenized US dollar current deposits and promoted the issuance, transfer, and exchange of the stablecoin "Avit" on Ethereum through the ERC-20 token standard. Custodia added: "A new US dollar payment channel has now been launched within the US banking system."

Caitlin Long, CEO of Custodia said: “We have made breakthroughs in legal/regulatory aspects, proving that U.S. banks can cooperate to tokenize demand deposits on a permissionless blockchain in a regulatory-compliant manner."