Custodia and Vantage Bank propose new deposit token network

Custodia and Vantage Bank have proposed a token model that enables automatic conversion between bank deposits and stablecoins, Cointelegraph reported. According to a white paper, the token is treated as a bank deposit within a consortium of participating banks. When moved outside this "Hazel" network, it converts into a stablecoin backed by cash and short-term U.S. Treasurys. The two firms explained that the system has been operating on the Ethereum (ETH) network since March and is currently being tested with participating banks, with a full launch targeted for later this year. Meanwhile, The Wall Street Journal (WSJ) recently reported that The Clearing House, a payments network operator owned by firms including JPMorgan, Bank of America, and Citigroup, is also pursuing the launch of a deposit token network in the first half of 2027.