Custodia Bank and Vantage Bank Achieve Milestone in Blockchain Banking
In a groundbreaking development for the financial sector, Custodia Bank and Vantage Bank have successfully completed the tokenization of U.S. dollar demand deposits on the Ethereum mainnet. This innovative collaboration has led to the issuance and redemption of Custodia’s Avit stablecoins on the Ethereum network, signifying a significant advancement in the realm of blockchain-based banking solutions.
The banks executed a series of eight meticulously regulated test transactions. These involved the processes of minting, transferring, and redeeming Avit tokens, all while adhering to stringent U.S. banking compliance standards, including BSA (Bank Secrecy Act), AML (Anti-Money Laundering), and OFAC (Office of Foreign Assets Control) regulations.
In this collaborative effort, Vantage Bank took charge of managing fiat reserves and providing essential traditional banking services such as Fedwire and ACH transactions. Meanwhile, Custodia Bank was responsible for overseeing blockchain operations, which included the issuance of tokens, custody of digital assets, and reconciliation activities through its advanced Avit Management System.
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