Despite the price pressures that have prevented Ethereum from experiencing the explosive surge investors expected, institutions continue to adopt the network for launching new tokens.
On March 25, Custodia Bank partnered with Vantage Bank to launch America’s first-ever bank-issued stablecoin on the Ethereum network. The launch follows the issuance of the Avit stablecoin by Custodia and Vantage after they collaboratively completed the tokenization of dollar-demand deposits.
The stablecoin, tagged as the first bank-issued stablecoin on a permissionless blockchain, will utilize Ethereum’s infrastructure to revolutionize the region’s payment system while improving the U.S. banking system.
The launch of the bank-issued stablecoin on Ethereum aims to address the global demand for a U.S. dollar stablecoin to execute efficient transactions.
With its launch on Ethereum, the stablecoin offers several efficiencies for users. Users of the Avit stablecoin will benefit from low transaction costs, fast transaction settlement, programmability, and auditability within a safe, compliant, and regulated banking environment.
Andy SawaPrior to the stablecoin’s launch on Ethereum, the banks conducted a series of eight test transactions to ensure full compliance with the required processes for minting, transferring, and redeeming stablecoins on the Ethereum mainnet.
While the development looks promising for the U.S. economy, there is still a need to counter regulatory restrictions on the use of stablecoins in the country.
Ethereum price action remains uncertain
While Ethereum continues to struggle amid unstable market conditions, holders remain curious about its next price action.
Although the price pressures on the Ethereum network are attributable to governance struggles and increased competition among other altcoins, there is speculation that a notable increase in Ethereum’s blockchain activity could be the breakthrough the network needs.
With growing institutional adoption, market analysts suggest that a price breakout for Ethereum could be imminent.
Vladislav Sopov
Dan Burgin