Vantage Bank and Rio Bank carried out an interbank loan payment on October 19, 2026, using tokenized deposits on the Ethereum mainnet. According to Participate, which handled the transaction, the principal and interest reached the receiving bank’s digital wallet in under three minutes, while loan balances and payment notices were updated simultaneously. The transaction combined Participate’s loan-sales platform with Hazel Network, developed by Vantage Bank alongside Custodia Bank, and Custodia’s ERC-20 token, Avit. Presented as the first interbank loan participation or syndication payment settled entirely with tokenized deposits, it demonstrated how these deposits can be integrated into existing bank workflows and could take a step toward the automation of loan servicing. Wider adoption will depend partly on interoperability among different tokenized deposit systems.
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