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First U.S. Bank Issues Stablecoin on a Permissionless Blockchain
- Custodia and Vantage Bank launch the first U.S. bank-issued stablecoin, Avit, operating on a permissionless blockchain.
- Avit tokenizes U.S. dollar demand deposits inside the banking system, enhancing transparency in digital payments.
- The introduction of Avit sets a new payment rail in the U.S. banking system, improving efficiencies in transactions.
- The Avit stablecoin offers lower costs, faster settlement times, programmability, and auditability in a regulated banking system.
- The partnership between Custodia and Vantage Bank enabled the minting, transfer, and redemption of Avit tokens on Ethereum.
- Avit ensures compliance with U.S. financial regulations while leveraging blockchain for efficient transactions.
- Full regulatory compliance with BSA/AML/OFAC standards was a key aspect of the Avit stablecoin's development.
- Custodia Bank and Vantage Bank collaborated closely with regulators to tokenize demand deposits on a permissionless blockchain.
- Avit's launch demonstrates the potential for U.S. banks to issue tokenized deposits on public networks, paving the way for a programmable payments infrastructure.
- Federal Reserve Governor Christopher Waller sees U.S. dollar-pegged digital assets as a way to enhance the dollar's supremacy globally and modernize banking with blockchain technology.
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