Banks Achieve Milestone with Tokenization of U.S. Dollar Deposits on Ethereum

According to CoinDesk, Custodia Bank and Vantage Bank have successfully completed the tokenization of U.S. dollar demand deposits on the Ethereum mainnet. This achievement marks a significant advancement in the integration of blockchain technology within the banking sector. The banks issued and redeemed Custodia's Avit stablecoins on the Ethereum mainnet, representing a pivotal moment in blockchain-based banking innovation. The process involved a series of eight regulated test transactions, which included minting, transferring, and redeeming Avit tokens. These transactions were conducted under full U.S. banking compliance, adhering to regulations such as the Bank Secrecy Act (BSA), Anti-Money Laundering (AML), and Office of Foreign Assets Control (OFAC) guidelines. Vantage Bank was responsible for managing fiat reserves and providing traditional banking services, including Fedwire and ACH transactions. Meanwhile, Custodia Bank focused on blockchain operations, overseeing the issuance, custody, and reconciliation of tokens through its Avit Management System.