Custodia, Vantage Bank Tokenize U.S. Dollar Demand Deposits on Ethereum

**Custodia Bank and Vantage Bank Successfully Complete U.S. Dollar Tokenization on Ethereum Mainnet**

By James Van Straten, AI Boost | Edited by Parikshit Mishra

March 25, 2025, 12:30 p.m. UTC

**Key Highlights:**

- Custodia's Avit stablecoin was used for redemption in the transactions.

- Avit provides low-cost, fast, and programmable payments while ensuring the security and oversight of traditional banking systems.

Custodia Bank, in collaboration with Vantage Bank, has achieved a significant milestone by successfully tokenizing U.S. dollar demand deposits on the Ethereum mainnet.

In this groundbreaking move, the banks issued and redeemed Custodia's Avit stablecoins, showcasing blockchain-based innovation in the banking sector.

The two institutions completed a series of eight regulated test transactions, which included minting, transferring, and redeeming Avit tokens, all conducted in full compliance with U.S. banking regulations, including BSA/AML/OFAC requirements.

Vantage Bank handled fiat reserves and provided traditional banking services such as Fedwire and ACH transfers, while Custodia Bank managed blockchain operations, including issuance, custody, and reconciliation, through its Avit Management System.

**Disclaimer:** Some parts of this article were generated with the help of AI tools, and reviewed by our editorial team for accuracy and adherence to CoinDesk's standards. For more information, see CoinDesk's full AI Policy.

---

James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its relationship with the broader macroeconomic environment.