Vantage Bank and Rio Bank Complete First Loan Participation Payment Using Tokenized Deposits
Vantage Bank and Rio Bank completed a loan participation payment of principal and interest using Hazel Network tokenized deposits through Participate’s loan services platform. According to ChainCatcher, the payment was announced on October 19. After Vantage submitted the payment, Participate distributed the principal and interest, and the tokenized deposits reached the receiving institution’s digital wallet in less than three minutes; loan balances and payment notices were updated automatically. The transaction was the first implementation of the banks’ partnership formed in April this year. Custodia CEO Caitlin Long confirmed that it took place on the Ethereum mainnet.Hazel was jointly developed by Vantage and Custodia. Participate, a BankLabs company, provides loan workflows and payment instructions; Vantage provides banking services and reserves; and Custodia handles wallets, blockchain operations, compliance, and reconciliation monitoring. Hazel’s white paper says the settlement model combines on-chain records with traditional bank ledger records, allows transactions only among authorized participants, and keeps customer identities and account information off-chain. Participate plans to offer tokenized deposits and Fedwire payment automation for loan participation and syndicated loan payments to 750 banks.