Vantage Bank and Custodia Unveil Hazel Network for Unified Tokenized Assets
Vantage Bank and Custodia have introduced the Hazel Network, a new infrastructure designed to bridge traditional banking with tokenized systems. By utilizing a single, integrated smart contract, the platform allows bank deposits to programmatically transform into stablecoins based on their movement, aiming to modernize payments while maintaining regulatory compliance.
The Hazel Network functions as a bank-architected sub-ledger, enabling 24/7 programmable settlement without requiring institutions to overhaul their legacy systems. At its core, the system solves a primary friction point in digital finance: the disconnect between bank deposits and stablecoins. Inside the consortium, tokens maintain their status as FDIC-insured deposits. Once they cross the boundary to external users, they automatically shift into GENIUS Act-compliant stablecoins backed by liquid assets like Treasuries.
This design prevents the drain of core deposits by providing a frictionless path for assets to return to the originating bank. According to Jeff Sinnott, President and CEO of Vantage Bank, the platform allows institutions to operate at software speeds while preserving customer relationships. Custodia CEO Caitlin Long noted that the project represents six years of development, aimed at solving real-world banking challenges through a "Compliance by Construction" paradigm. This approach gates every transfer through three screening layers, including off-chain AML checks, blockchain analytics, and an on-chain sanctions oracle.
Implementation options range from basic models—which function like traditional correspondent banking—to enterprise-grade, real-time API integrations. A reference implementation on the Ethereum mainnet has been live since March 2026, with full availability for banks and credit unions scheduled for the fourth quarter of the year.
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