Source: Caitlin LongVantage Bank CEO and President Jeff Sinnott said the event was a “pivotal moment in reshaping the financial landscape, demonstrating how blockchain and stablecoins can revolutionize payments.”In a series of posts on X, Long explained that the Avit stablecoin was a “real dollar” and not a “synthetic” dollar, as Federal Reserve Board Governor Christopher Waller called stablecoins in a Feb.12 speech.“Real” US dollars, Long explained, can only be issued by the Federal Reserve and a few legally authorized entities, including Custodia Bank.
Custodia said on March 25 that it tokenized US dollar demand deposits and facilitated the issuance, transfer and redemption of the stablecoin “Avit” on Ethereum via the ERC-20 token standard.“A new US dollar payment rail has now been activated inside the US banking system,” Custodia added.“We broke ground on the legal/regulatory front, proving that US banks can collaborate to tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner,” said Custodia CEO Caitlin Long.
Ethereum educator Anthony Sassano also posted to make clear the “permissionless blockchain” Custodia referred to in its announcement.“Just in case it wasn’t obvious, this is built on Ethereum.”Source: Matthew SigelRelated: Ethereum poised for record highs in Q1 2025, analysts predictEthereum secures over $125.8 billion worth of stablecoins on its network, nearly doubling the second-place Tron blockchain at $64.8 billion, DefiLlama data shows.
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Author / Journalist: Cointelegraph by Brayden Lindrea
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