Custodia & Vantage Bank Launches Nationwide Crypto Deposit Platform

Platform Mechanism and Pilot Profit

The platform, dubbed the “Crypto Deposit Network,” builds on a successful 2024 proof-of-concept between Custodia — a Wyoming-licensed SPDI (Special Purpose Depository Institution) focused on cryptocurrency custody — and Vantage, a San Antonio-based regional bank with $3 billion in assets. The pilot, which involved logistics company DX Xpress, demonstrated the ability to send cryptocurrencies for instant cross-border payments, reducing settlement times from days to seconds while providing FDIC insurance protection of up to $250,000 per depositor.

Custodia, a Wyoming-licensed special purpose depository institution (SPDI) focused on digital assets, and Vantage Bank, a regional Texas bank, have partnered to tokenize bank deposits on the Ethereum network through ERC-20 tokens backed 1:1 by fiat deposits.

During the March 2025 test, they executed a series of eight managed transactions, where deposits were converted to Avit tokens, transferred directly on-chain, and converted back to fiat—all within a banking compliance framework (BSA/AML/OFAC) and fully compliant with banking regulations.

The technology, which is said to be covered by US patent No. 11,392,906 (issued July 2022) on tokenizing US dollar deposits, is the basis for the offering.

Blockchain Bridge in Banking Industry

From Wyoming SPDI to Nationwide NetworkCustodia, which launched in 2021 as the first US crypto bank under Wyoming's SPDI charter, has been backing crypto deposits since raising $50 million from Dragonfly and Pantera, focusing on "crypto-native" services without the reach of the Federal Reserve.

Vantage, a Texas mainstay since 1919, brings FDIC-insured strength and broad reach to close the $1.5 trillion community banking gap, where 4,700 institutions struggle with legacy technology. The GENIUS Act—passed in July 2025—has given the green light, requiring compliant tokenized deposits for programmable features while also limiting systemic risk. The platform, powered by ConsenSys’ Linea L2, ensures atomic payments and audit trails, addressing OCC concerns from its 2023 pilot programs. Early successes: DX Xpress’s $5 million cross-border trial cuts costs by 70% compared to SWIFT. Against the backdrop of the Fed's stable interest rate macro and the BRICS digital yuan pilot program, tokenized deposits provide inflation protection (CPI 2.8%) with yields that outperform certificates of deposit (3.5%).

Evaluation and Conclusion

The Custodia & Vantage initiative is a strategic turning point in the evolution of tokenization and banking infrastructure. While still in its early stages, the proposal — bank-issued tokenized deposits managed on public chains — bridges the long-standing gap between fintech innovation and the banking system.

For both those operating in crypto and traditional finance, this is one of the most important developments of the year: proving that the future of money may not just be “tokens on the blockchain” but “bank debt on the blockchain.”

As the system scales, the real winners may be those who integrate the replay of these rails into business models, treasury systems, and managed networks—rather than just speculating on the underlying tokens.

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