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This innovative feat was achieved by issuing, transferring, and redeeming Avit
stablecoins for a bank customer. It created a new U.S. dollar payment rail within the U.S. banking system.
With rising global demand for U.S. dollar stablecoins. This milestone marks a major step in U.S. Dollar Tokenization and blockchain integration into traditional banking.
Banks Achieve Compliant Blockchain Transactions
The two banks worked together to mint, transfer, and redeem the Avit tokens on the Ethereum mainnet using the ERC-20 standard. Throughout the process, eight stages were completed. This includes transferring tokens into self-custody, transacting business-to-business. Also, redeeming tokens back into U.S. dollar demand deposits. Vantage Bank handled the fiat reserves and provided Fedwire/ACH services, while Custodia Bank managed blockchain issuance and redemptions. As well as ensuring compliance with regulatory requirements.
BIG NEWS: @custodiabank & @Vantage_Bank have issued America’s first bank-issued #stablecoin on a permissionless blockchain. First-ever tokenization of a U.S. bank’s U.S. dollar demand deposits for a bank customer on a permissionless blockchain:https://t.co/6hrBGGEouA pic.twitter.com/wnAKfvKU35
— Custodia Bank
Several efficiencies were observed during the test transactions. Such as low transaction costs, fast settlement times, and enhanced programmability. The entire process took place in a safe, compliant, and regulated environment, addressing one of the major concerns surrounding the use of blockchain in traditional finance: Ensuring regulatory compliance. This success proves that blockchain technology can coexist with U.S. banking regulations, which has been a barrier in the past.
CEOs Celebrate U.S. Dollar Tokenization Milestone
Caitlin Long, CEO of Custodia Bank, celebrated the achievement, saying, “We broke ground on the legal and regulatory front, proving that U.S. banks can tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner.” She also expressed hope for the reversal of regulatory obstacles that have hindered stablecoin innovation in the past, paving the way for consumers to benefit from blockchain’s global reach.
1/ The total number of avUSD minted significantly outweighs the redeemed amount in 2025 on@avantprotocol .
Over 1,000 ($19 M) mint transactions compared to fewer than 110 redeems show strong demand for avUSD issuance.
Data insights powered by @flipsidecryptopic.twitter.com/AjKnDwCd3M
— Ellery (@ellery_durwin) March 23, 2025
Jeff Sinnott, President and CEO of Vantage Bank, emphasized the long-term significance of the event, noting, “This event marks a pivotal moment in reshaping the financial landscape, demonstrating how blockchain and stablecoins can revolutionize payments. It’s a win for cross-border modernization and a testament to regulators supporting responsible innovation.”
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