US banks create ‘new payment rail’ with tokenised deposits
Custodia and Vantage launch what they say is first tokenisation of a dollar demand deposit
Two US banks have created what they say amounts to a new dollar payment rail, after trialling the first stablecoin based on a tokenised demand deposit.
Wyoming-based Custodia Bank and Texas’s Vantage Bank collaborated to issue, transfer and redeem Custodia’s avit stablecoins for a bank customer. The process allowed dollars to be sent from one account to another outside the Federal Reserve’s Fedwire payment system.
“A new US dollar payment rail has now been activated inside the US banking system
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Payments
BoT says payment systems still in operation following earthquake
Powerful quake hits Myanmar and Thailand as Bangkok’s stock exchange suspends trading
Can central banks cut remittance fees to sustainable levels?
More action is needed to reach the UN’s 3% global average cost target. But central banks face limits on what they can do
Eurozone outlines payment verification system
ECB says new service will build on work by Portuguese and Latvian central banks
Moldova joins Single European Payments Area
Central bank hails “historic decision” that it says will save citizens €12 million annually
Fast payment systems enhance financial inclusion – BIS paper
Researchers examine systems’ spread in Latin America and Caribbean
