Custodia and Vantage Launch Blockchain Platform for Secure Tokenized Deposits

Highlights:

• Custodia and Vantage introduce a blockchain platform that lets banks issue secure tokenized deposits.
• The system allows banks to manage wallets holding both digital deposits and stablecoins.
• The system ensures secure transactions and protects deposits using SOC 2 compliance standards.

Wyoming-based Custodia Bank and Texas-based Vantage Bank have teamed up to introduce a turnkey blockchain solution. This system allows banks to create tokenized deposits, which are digital versions of real bank deposits that exist on a blockchain. These deposits also work with stablecoins, a type of digital money tied to the US dollar. The system helps banks use blockchain to process transactions almost instantly and at low cost. Banks can connect with other banks while keeping customer deposits safe, the companies said in a statement on Thursday. 

🚨🚨🚨NEWS!! This has been in the works for more than 5 years; we were the first to issue #tokenizeddeposits on a permissionless blockchain in the US with our bank partner @Vantage_Bank in March; and now the consortium is officially launched! Deets:👇 https://t.co/QeVte1euCW

— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) October 23, 2025

Custodia and Vantage Patent-Protected Platform to Issue Tokenized Deposits and Stablecoins

The platform uses a special patent-protected system. It lets banks create digital tokens that work both as tokenized deposits and as stablecoins. This initiative aims to connect crypto and traditional banking by creating a single digital token. Banks of all sizes can use the platform. They keep full control of their wallets, which hold tokenized deposits and GENIUS Act-compliant stablecoins. At the same time, it protects core deposits from the risk of disintermediation, meaning banks cannot be bypassed by other financial actors.

The wallets are built on Custodia’s secure, bank-focused blockchain platform. This platform meets SOC 2 Type II standards, a security audit from the American Institute of Certified Public Accountants that checks a company’s internal controls. 

The system also integrates with Infinant’s Interlace payment network. It allows banks and financial institutions of all sizes to safely issue and manage digital tokens that follow regulations. “By ensuring tokens remain within the banking environment, the model helps preserve the advantages of tokenization while encouraging deposits to remain in, or return to, the issuing institution,” the banks said.

Banks Use Tokenized Deposits to Stay Competitive in the Digital Era

As banks adopt more digital solutions, tokenized deposits give them a way to stay competitive. Custodia and Vantage’s platform helps banks use blockchain technology while keeping full control of customer deposits. Custodia is also running pilot programs using its dollar tokenization technology. These include cross-border payments for transport and milestone-based construction payments. It also helps manufacturers with supply chain settlements and offers flexible payroll solutions for service industries.

The market got a boost after US President Donald Trump signed the GENIUS Act in July. But banks have warned regulators that stablecoin issuers offering interest on deposits could threaten the traditional banking system.

The US Treasury estimated in April that the stablecoin market could grow to $2 trillion by 2028 and cause $6.6 trillion in banking deposit outflows. For banks, tokenized deposits offer a way to reduce these outflows. They can help banks stay competitive as the industry moves more toward digital financial solutions.

🇺🇸 US Treasury Secretary: "Stablecoins could reach $2 trillion by 2028"

During a hearing before the US Senate, Treasury Secretary Scott Bessent predicted that the market for dollar-backed stablecoins could surpass $2 trillion within three years.

The GENIUS Act, the stablecoin… pic.twitter.com/iLWYnYN3gU

— Atlas21 (@Atlas21_news) June 12, 2025