Custodia and Vantage Bank launch tokenized deposit platform

Jinse Finance reported that crypto-friendly banks Custodia Bank and Vantage Bank have launched a one-stop blockchain solution that allows traditional banks to issue tokenized deposits that can operate in conjunction with stablecoins. In a statement released on Thursday, the two banks said the solution enables banks to leverage blockchain for near-instant, low-cost transactions and achieve interbank interoperability while still retaining customer deposits. The statement noted: "This patented framework is designed to provide institutions and their clients with the efficiency and security brought by tokenization, while protecting core deposits from the risk of being transferred to other platforms." Tokenized deposits refer to digital versions of bank deposits issued by banks on the blockchain, representing real US dollar assets held by the banks.