Overview

• 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.