Vantage Bank and Rio Bank Complete Tokenized Deposit Loan Payment

Vantage Bank and Rio Bank have completed the principal and interest payments for loan participants using tokenized deposits through the loan service platform Participate on the Hazel Network. After the payment, the platform allocated the principal and interest in less than three minutes, with the tokenized deposits reaching the digital wallets of the receiving institutions, and the loan balance and payment notifications being automatically updated in sync. This payment was announced on October 19 and marks the first implementation of the collaboration between the two banks that began in April this year. Caitlin Long, CEO of Custodia, confirmed that the transaction occurred on the Ethereum mainnet. Hazel was jointly developed by Vantage and Custodia, with Participate providing the loan workflow and payment instructions, Vantage offering banking services and reserves, and Custodia responsible for wallet, blockchain operations, compliance, and reconciliation monitoring. The Hazel white paper states that this settlement model includes both on-chain and traditional ledger records, with transactions permitted only for authorized participants, while customer identities and account information are kept off-chain. Participate plans to offer tokenized deposits and Fedwire payment automation services to 750 banks for loan participation and syndicate payments.

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