Custodia, Vantage propose token that toggles between bank deposits and stablecoins

▤ Summary

Custodia and Vantage Bank have proposed a dual-purpose token that acts as a bank deposit inside a banking consortium and as a stablecoin outside it. The system is designed to connect traditional banking infrastructure with blockchain-based payment rails while letting banks keep customer deposits on their own ledgers. The companies say the platform has already been running on Ethereum since March and is being tested by participating banks before a planned broader rollout later this year. The proposal targets banks and credit unions of all sizes and aims to support tokenized deposits, stablecoins, and other blockchain-based financial assets without forcing a core banking replacement.

▦ Linked Companies

Custodia

$1M to $5M