Vantage Bank and Custodia Release White Paper Unveiling "Hazel Network"

New Live Infrastructure for Banks and Credit Unions Introduces a Unified Token Combining Tokenized Bank Deposits and Stablecoins

SAN ANTONIO and CHEYENNE, Wyo., June 18, 2026 /PRNewswire/ -- Vantage Bank and Custodia today announced the release of their white paper, "Hazel Network: Unified Tokenized Bank Deposit and Stablecoin Token." The publication details a breakthrough, bank-architected token sub-ledger that safely and soundly bridges traditional banking with the tokenized systems, such as stablecoins, tokenized stocks and agentic commerce. Hazel Network offers attractive economics to banks of all sizes and delivers 24/7/365 programmable settlement, allowing banks to modernize payments directly from within the regulated banking system. Hazel Network programmatically executes the embedded compliance and operational controls that banks require, making it clear Hazel Network was built by banks for banks.

At the core of the breakthrough is a single, integrated smart contract that issues a dual-character tokenized U.S. dollar. Every tokenized dollar within Hazel Network begins its life cycle as a tokenized deposit issued by a consortium member bank, and it automatically transforms between a tokenized deposit and a stablecoin (or the reverse) based on who holds it:

• Inside the Consortium: the token is a bank deposit, with the issuing member bank as obligor and with the protections and obligations that status implies, including FDIC insurance.
• Outside the Consortium: the token is a stablecoin, designed to be GENIUS Act-compliant and backed at least 1:1 by liquid assets such as cash and short-duration Treasuries.

Unlike incumbent stablecoins that can permanently drain a bank's core deposits, Hazel Network inverts this trend by creating a frictionless, programmatic path for the stablecoin to come back  to the originating bank as a tokenized deposit. No conversion transaction between the tokenized deposit and stablecoin (or vice versa) is required, since the token programmatically transforms when it crosses the consortium boundary. This design eliminates conversion friction and costs, bypasses crypto exchanges, and protects primary customer-bank relationships from disintermediation.

"Hazel Network delivers payments innovation from within the banking system in a compliant way, and we created it for banks of all sizes – including and especially community banks," said Jeff Sinnott, President and CEO of Vantage Bank. "We built a compliant, secure ledger that extends your core and enables banks to operate at software speed while fully preserving your core customer relationships."

"Today's announcement was six years in the making," added Caitlin Long, CEO of Custodia. "Vantage helped us tailor our original design to solve real problems for banks, and we believe this white paper demonstrates why our teams earned the top two spots on American Banker's list of the top 50 Most Innovative People in Finance this year."

Hazel Network features a "Compliance by Construction" paradigm. Every token transfer is automatically gated across three distinct screening layers before on-chain settlement can execute:

1. Fiat Screening: Off-chain AML, fraud, and sanctions checks on related fiat movements.
2. Blockchain Analytics: The platform automates analysis of wallets and addresses, and it programmatically prevents high-risk transactions from even initiating an on-chain token transfer until the compliance department has cleared the compliance alerts.
3. On-Chain Sanctions Oracle: An on-chain check that automatically queries a sanctions oracle and instantly blocks any transactions involving sanctioned entities.

This protocol-level enforcement also applies directly to reserve requirements. The smart contract automatically blocks any out-of-consortium transfer that would exceed Custodia's verified, programmatic reserve balance.

Designed to accommodate banks and credit unions of all sizes, Hazel Network functions as a digital asset sub-ledger—running alongside a bank's existing core and general ledger, without requiring banks to replace legacy systems. Banks can participate through three flexible integration models, the shortest of which requires only 4-6 weeks to implement:

• Basic – No core integration required; utilizes the standard Hazel Platform and Bank Console and operates like a traditional correspondent banking delivery model.
• Advanced – Integrates via scheduled batch delivery of posting and compliance files, alongside an online banking SDK.
• Enterprise – Full, real-time API integration enabling near-immediate debits/credits and the creation of custom programmable products.

Hazel Network's reference implementation on Ethereum mainnet has been live since March 2026. Vantage, Custodia and Infinant, their integration partner, have completed the first of four required testing phases of Hazel Network's production systems at scale, and will soon begin phase two. The first group of banks will soon be announced, and multiple large-scale pilots are in process (including one already announced with Participate to use tokenized bank deposits to facilitate bank-to-bank loan participation closings and servicing). Hazel Network is scheduled to be fully available for banks and your customers by Q4 2026.

The foundational token design is protected by U.S. Patents 11,392,906, 12,450,578, 12,579,525 and others still pending. Additional patents are pending on Hazel's unified-token model that extends this design to dual legal characterization at the consortium boundary and still other subject matter.

Banks and credit unions interested in exploring consortium membership are invited to contact Shawn Main at Vantage Bank for onboarding details at [email protected].

About Vantage Bank
Vantage Bank is prepared for what's possible! We are dedicated to delivering sophisticated, innovative financial solutions while maintaining a strong commitment to the communities we serve. Family and employee owned, Vantage Bank is headquartered in Texas and operates through a diverse set of locations across the state. Our suite of powerful digital tools and services rivals those offered by fintechs and similar non-bank financial services companies. We operate within a safe and sound environment—providing peace of mind and the financial security that only a regulated institution can offer. By integrating advanced technology with personalized service, Vantage Bank empowers individuals and businesses to achieve their financial goals while upholding the highest standards of compliance and community engagement. Visit us at www.vantage.bank.

About Custodia
Custodia is a Wyoming special purpose depository institution formed to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets that can meet the strictest level of institutional custody standards. Custodia is required to fully comply with all applicable laws and regulations, including the Bank Secrecy Act and federal "know your customer," anti-money laundering and related laws and regulations. Custodia also complies with Wyoming's special purpose depository institution and digital asset laws, which include requirements that fiat deposits be 100% reserved and that Custodia meet the strictest investor protections in the digital asset industry. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Media Contact:
Leslie Komet Ausburn
Komet Marketing Communications
[email protected]
210.326.8992

SOURCE Vantage Bank and Custodia