Hazel Network Revolutionizes Banking with Tokenized Deposits and Stablecoins

A new banking blockchain solution has been introduced in the U.S., allowing for a token to automatically change its form depending on where it is held. The Hazel Network, developed by Vantage Bank and Custodia, combines tokenized deposits and stablecoins within a single instrument and enables 24/7 settlement.

The platform uses a Compliance by Construction framework, which includes three layers of review before execution on a blockchain network: screening of fiat transactions for money laundering indicators, fraud risks, and sanctions concerns; blockchain analytics with automated wallet and address assessments; and on-chain sanctions screening through a dedicated sanctions oracle.

Hazel Network already has a functioning reference implementation on the Ethereum mainnet, where it has been operating since March 2026. The companies are preparing for the second production-scale testing phase after completing the first one, and several large-scale pilot projects are already underway, including one involving Participate.