Custodia, Vantage Bank launches platform for tokenized deposits

Custodia Bank has launched a solution that lets banks tokenize deposits, enabling them to benefit from blockchain’s advantages while safeguarding customer deposits.

Crypto-friendly banks Custodia Bank and Vantage Bank have launched a turnkey blockchain solution allowing traditional banks to issue tokenized deposits that will work with stablecoins.

The solution enables banks to leverage blockchain’s near-instant, low-cost transactions in an interoperable manner with other banks while being able to retain customer deposits, the two banks said in a statement on Thursday.

Tokenized deposits are digital versions of bank deposits issued on a blockchain, representing real US dollars held by banks. 

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