Custodia Bank Launches First Bank-Issued Stablecoin on Ethereum; Switzerland Sees Debit Cards Overtake Cash as Top Payment Method

Custodia Bank, based in Wyoming, in collaboration with Vantage Bank, has launched the first bank-issued stablecoin, Avit, on the Ethereum blockchain, marking a significant step in integrating traditional banking with decentralized finance. Announced on Tuesday, the initiative involves converting customer U.S. dollar deposits into Avit tokens, fully backed by dollar reserves held by the banks. This contrasts with stablecoins like USDT and USDC, which are not bank-issued and are backed by cash equivalents. The test transactions were compliant with BSA/AML/OFAC regulations. Meanwhile, in Switzerland, a recent Swiss National Bank (SNB) survey reveals that debit cards have surpassed cash as the preferred payment method. In 2023, 35% of in-store transactions were settled using debit cards, compared to 30% for cash, a significant shift from 2017 when cash accounted for 70% of transactions. Cryptocurrency ownership in Switzerland is growing, rising from 6% in 2022 to 10% in 2024, with the 15 to 34-year-old demographic leading the way at 17%. However, crypto remains a niche payment option, with only a small fraction of owners using it for transactions.