Custodia Bank and Vantage Bank Texas launch a live platform for tokenized deposits, expanding to a nationwide network for U.S. banks. Participating institutions can issue tokens representing insured deposits, compliant with U.S. banking laws and the GENIUS Act.

The tokens are digital dollars that change form, fully FCIC-insured when held by a bank, and behave like stablecoins when moved. The platform uses Infinant’s APIs and ledger infrastructure for conversions, with a protocol involving an on-chain oracle and off-chain controls.

Unlike a previous proof-of-concept, the new rollout is designed for real-world transactions on a permissionless network. Custodia and Vantage prioritize open access and interoperability, aiming to create a compliant settlement layer for moving insured dollars at blockchain speed.

Multiple banks have committed to the platform, with the Federal Reserve showing interest. The platform is awaiting final regulatory approval to launch at scale, potentially creating a parallel payments network from within the system.

Read more at Yahoo Finance: Custodia, Vantage Expand Pilot Into Live Tokenized Deposit Network for US Banks