Custodia and Vantage Bank launch a stablecoin-compatible encryption deposit platform

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Two cryptocurrency-friendly banks, Custodia Bank and Vantage Bank, have launched a blockchain solution that allows traditional banks to issue tokenized deposits compatible with stablecoins. This solution helps leverage the fast transactions and low costs of blockchain while keeping customer deposits safe.

Tokenized deposits are the digital version of bank deposits, representing real USD on the blockchain, facilitating a seamless connection between the traditional financial system and cryptocurrency. This platform utilizes Custodia's blockchain and Infinant's Interlace network, continuing Custodia's role as the first American bank to issue encrypted deposits on a decentralized blockchain.

In the context of stablecoin potentially reaching 2 trillion USD by 2028, this solution helps banks maintain a competitive advantage, reduce the risk of capital flight from the system, while also expanding applications in cross-border payments and supply chains.

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