In a move to bridge traditional banking with digital assets, Custodia Bank and Vantage Bank have partnered to launch a new blockchain solution. The platform provides a turnkey system for banks to issue tokenized deposits, which are designed to work seamlessly with stablecoins.

The collaboration aims to give financial institutions access to the speed and low cost of blockchain transactions without losing customer funds to outside crypto platforms. According to a joint statement, the patent-protected framework offers the efficiency of tokenization while safeguarding core deposits from the risk of disintermediation.

A Hybrid Digital Asset for Banking

Tokenized deposits are digital representations of U.S. dollar deposits held at a bank, issued directly onto a blockchain. This initiative addresses the long-standing challenge of interoperability between the crypto ecosystem and conventional finance by creating a single digital token that serves as both a tokenized deposit and a stablecoin.

The platform is built to be accessible to banks of any size, allowing them to maintain full control over their digital wallets. These wallets can hold both the tokenized deposits and what the companies describe as GENIUS Act-compliant stablecoins. The system operates on Custodia’s bank-focused blockchain and utilizes the Interlace network from payment platform Infinant.