With Avit, Custodia Bank and Vantage Bank launch the first regulated stable coin of the USA at Ethereum Blockchain

With Avit, Custodia Bank and Vantage Bank launch the first regulated stable coin of the USA at Ethereum Blockchain

First regulated StableCoin of US banks: Avit on the Ethereum Blockchain

The Custodia Bank and Vantage Bank have jointly introduced the first and regulated stable coin on Ethereum Blockchain. This stable coin, called Avit, corresponds to the ERC 20 standard and is fully covered by US dollar reserves.

regulation and emission

Custodia Bank takes over the emission and custody of the stable coin, while Vantage Bank is responsible for the Fiat reserves and transaction processing. The introduction of the Avit StableCoin was carried out in eight phases, the focus was on compliance with regulatory requirements, in particular the guidelines of the Bank Secrecy Act (BSA), Anti-Money Lundering (AML) and the provisions of the Office of Foreign Assets Control (OFAC).

Advantages of avit

CAITLIN LONG, CEO of Custodia Bank, emphasizes the regulatory breakthrough, since US banks are now able to to be tokensis on a public blockchain. Avit promises to reduce transaction costs and enable faster handling. However, the competition remains high in a dynamically developing market, with prominent players such as Circle and Wlfi.

FAZIT

The introduction of Avit marks an important step in the integration of traditional financial systems with blockchain technology. Due to the regulatory conformity and the support of established banks, the stablecoin could help strengthen trust in digital currencies and to promote their use in everyday life.