Custodia and Vantage Banks Issue First Bank-Backed Stablecoin on Ethereum

The Avit stablecoin marks a breakthrough in blockchain banking, tokenizing U.S. dollar deposits with full regulatory compliance.

Custodia Bank and Vantage Bank successfully issued the Avit stablecoin, the first bank-issued stablecoin on a permissionless blockchain, on March 25, 2025.
The project involved eight regulated test transactions, including minting, transferring, and redeeming Avit tokens, fully compliant with U.S. banking regulations.
Custodia managed blockchain issuance, custody, and reconciliation, while Vantage oversaw fiat reserves and traditional banking services.
The Avit stablecoin offers low transaction costs, fast settlement, programmability, and auditability, showcasing blockchain's potential to modernize financial systems.
Despite this milestone, Custodia continues to face regulatory challenges, including its ongoing appeal for a Federal Reserve master account.