Traditional finance and on-chain assets' walls are finally starting to come down. Looking forward to the actual experience once the banking alliance gets up and running.

According to DigitalToday, Custodia Bank and Vantage Bank proposed a token structure that allows conversion between bank deposits and stablecoins. According to the white papers from both companies, the token operates as deposits issued by member banks within the banking alliance; when transferred out of Hazel Network, it is converted into a stablecoin backed by cash and short-term U.S. Treasury bonds. The system has been running on Ethereum since March and is expected to be more broadly accessible to banks and customers by the fourth quarter of 2026.