Custodia and Vantage Bank partner for ‘first bank-issued stablecoin’

The crypto-friendly Custodia Bank has worked with Vantage Bank to implicit what the 2 firms accidental is “America’s first-ever bank-issued stablecoin” connected a permissionless blockchain.

Custodia said connected March 25 that it tokenized US dollar request deposits and facilitated the issuance, transportation and redemption of the stablecoin “Avit” connected Ethereum via the ERC-20 token standard.

“A caller US dollar outgo obstruction has present been activated wrong the US banking system,” Custodia added.

“We broke crushed connected the legal/regulatory front, proving that US banks tin collaborate to tokenize request deposits connected a permissionless blockchain successful a regulatorily-compliant manner,” said Custodia CEO Caitlin Long.

Source: Caitlin Long

Vantage Bank CEO and President Jeff Sinnott said the lawsuit was a “pivotal infinitesimal successful reshaping the fiscal landscape, demonstrating however blockchain and stablecoins tin revolutionize payments.”

In a bid of posts connected X, Long explained that the Avit stablecoin was a “real dollar” and not a “synthetic” dollar, arsenic Federal Reserve Board Governor Christopher Waller called stablecoins successful a Feb. 12 speech.

“Real” US dollars, Long explained, tin lone beryllium issued by the Federal Reserve and a fewer legally authorized entities, including Custodia Bank. She added that Avit is simply a “real dollar” arsenic it tokenizes a bank’s request deposit — funds that customers tin retreat on-demand, specified arsenic wealth successful a checking account.

Ethereum backers cheer Custodia’s concatenation choice

Custodia has historically championed Bitcoin, and Ethereum advocates were speedy to enactment that the slope chose Ethereum for the stablecoin.

“ETH fixed this. Bitcoin couldn’t,” wrote Ethereum advocator Evan Van Ness. Ethereum pedagogue Anthony Sassano besides posted to marque wide the “permissionless blockchain” Custodia referred to successful its announcement.

“Just successful lawsuit it wasn’t obvious, this is built connected Ethereum.”

Source: Matthew Sigel

Related: Ethereum poised for grounds highs successful Q1 2025, analysts predict

Ethereum secures implicit $125.8 cardinal worthy of stablecoins connected its network, astir doubling the second-place Tron blockchain astatine $64.8 billion, DefiLlama information shows.

Ethereum besides tokenizes implicit $3.6 cardinal worthy of US Treasury bills — 7 times much than its adjacent competitor, Stellar, astatine $465.7 million, according to RWA.xyz data.

Magazine: Comeback 2025: Is Ethereum poised to drawback up with Bitcoin and Solana?