Custodia Bank Launches First Bank-Issued Stablecoin on Ethereum
Custodia Bank, in partnership with Vantage Bank, has launched Avit, the first U.S. bank-issued stablecoin on a permissionless blockchain (Ethereum). This historic move tokenizes dollar-demand deposits while ensuring full regulatory compliance.
The issuance, completed in eight transaction stages, highlights low fees, fast settlement, and enhanced programmability within a regulated banking framework. Vantage Bank manages the fiat reserves, while Custodia handles blockchain issuance and custody.
Custodia CEO Caitlin Long sees this as a breakthrough amid U.S. regulatory challenges. As stablecoin regulation—like the GENIUS Act—advances, major banks such as Bank of America are also eyeing stablecoin issuance.
With stablecoin market caps rising by $4 billion last week to over $233B, Custodia’s move signals a new era for blockchain-based banking infrastructure.
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