Custodia, Vantage Bank Tokenize U.S. Dollar Demand Deposits on Ethereum

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By James Van Straten , AI Boost | Edited by Parikshit Mishra Mar 25, 2025, 12:30 p.m. UTC Custodia Bank CEO Caitlin Long on CoinDesk TV's "All About Bitcoin." (CoinDesk TV) What to know : The banks used Custodia's Avit stablecoin for redemption. Avit enables low-cost, fast, and programmable payments while maintaining traditional banking safety and oversight. Custodia Bank and Vantage Bank have completed the tokenization of U.S. dollar demand deposits on the Ethereum mainnet. The banks issued and redeemed Custodia's Avit stablecoins on the Ethereum mainnet, marking a major milestone in blockchain-based banking innovation. Story continues Don't miss another story. Subscribe to the Crypto Long & Short Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . They conducted a series of eight regulated test transactions, involving minting, transferring, and redeeming Avit tokens under full U.S. banking compliance, including BSA/AML/OFAC regulations. Vantage Bank handled fiat reserves and traditional banking services (Fedwire/ACH), while Custodia oversaw blockchain functions such as issuance, custody, and reconciliation through its Avit Management System. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy. Custodia bank Ethereum James Van Straten James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin's role within the broader financial system. In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR). X icon AI Boost “AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk's AI Policy. About About Us Masthead Careers CoinDesk News Crypto API Documentation Contact Contact Us Accessibility Advertise Sitemap System Status DISCLOSURE & POLICES CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . 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