Texas-based Vantage Bank and Custodia Bank announced a collaboration to launch a new platform that enables U.S. banks to issue tokenized deposits, a press release stated. The initiative utilizes Custodia’s bank-grade blockchain infrastructure together with the Interlace platform from partner Infinant. The move will allow community and regional lenders to integrate tokenized deposits and stablecoins directly into their existing banking systems.
What are tokenized deposits?
Tokenized deposits are digital representations of traditional bank deposits issued on blockchain rails. They are backed by real U.S. dollars held at the issuing bank, but are live and move on a distributed-ledger infrastructure. The platform lets banks create tokens that can switch between being regular deposits and stablecoins, keeping the benefits of traditional deposits while adding the speed and flexibility of digital money.
Tokenized Deposits enable banks to offer faster, lower-cost payments, including cross-border, supply-chain, programmable payments, while retaining control over deposits. They deliver interoperability between banks and digital asset rails. For example, it can allow community banks and credit unions to join the consortium and issue tokens under a shared standard. It will give banks the ability to support 24/7 transactional flows, automate payment rules, and streamline settlement.
Major banks going the blockchain way
Many banks are increasingly turning toward tokenized deposits, or simply put a blockchain-based versions of traditional bank deposits. For example, JPMorgan Chase launched its “JPMD” deposit token on the Base blockchain in June 2025. This enables its institutional clients to hold digital claims on dollar deposits that settle 24/7 and live on-chain. Analysts from JPMorgan also note that tokenized bank deposits are gaining regulatory preference globally over stablecoins, especially in Europe and the UK, because they retain banking protections like deposit insurance while adding blockchain programmability.
By offering tokenized deposits, Vantage Bank and Custodia aim to retain deposits within the banking system, countering the risk of funds migrating to non-bank stablecoins, while giving banks the flexibility and speed of programmable money.