On March 25, Custodia Bank, in partnership with Vantage Bank, announced the launch of 'Avit,' a US dollar stablecoin issued on the Ethereum blockchain. This marks what the firms claim as "America's first-ever bank-issued stablecoin" on a permissionless blockchain. Custodia tokenized US dollar demand deposits, enabling the issuance, transfer, and redemption of Avit via the ERC-20 standard. According to Custodia CEO Caitlin Long, this initiative establishes a new US dollar payment rail within the banking system, demonstrating regulatory compliance for banks tokenizing deposits on a permissionless blockchain. Vantage Bank CEO Jeff Sinnott hailed it as a pivotal moment for revolutionizing payments. Long clarified that Avit represents a 'real dollar,' backed by bank demand deposits, distinguishing it from 'synthetic' dollars. The choice of Ethereum for this stablecoin was noted by Ethereum advocates.
Custodia Bank and Vantage Bank Launch US Dollar Stablecoin 'Avit' on Ethereum
Edited by: Yuliya Shumai
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