Vantage Bank and Rio Bank have completed a principal and interest payment for a loan participation through Participate’s lending services platform using tokenized deposits on Hazel Network, according to ChainCatcher. Participate said that after Vantage submitted the payment, the platform distributed principal and interest, with the tokenized deposits reaching the receiving institution’s digital wallet in less than three minutes. Loan balances and payment notices were updated automatically at the same time, linking a process that has traditionally relied on wire transfers, spreadsheets, and email notifications. The payment was disclosed on Oct. 19 and marks the first live implementation since the two banks began working together in April this year. Custodia CEO Caitlin Long confirmed that the transaction took place on the Ethereum mainnet. Hazel was jointly developed by Vantage and Custodia, while Participate, a BankLabs company, handled loan workflow and payment instructions. Vantage provided banking services and reserves, and Custodia managed wallets, blockchain operations, compliance, and reconciliation monitoring. According to the Hazel white paper, the settlement model combines on-chain records with traditional bank ledgers, limits transactions to approved participants, and keeps customer identity and account information off-chain.
Vantage Bank and Rio Bank completed a principal and interest payment for a loan participation through Participate’s lending services platform using tokenized deposits on Hazel Network, according to ChainCatcher.
Participate said that after Vantage submitted the payment, the platform distributed 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 at the same time, connecting a process that has traditionally depended on wire transfers, spreadsheets, and email notifications.
The payment was disclosed on Oct. 19. It was the first implementation since the two banks began working together in April this year.
Custodia Chief Executive Officer Caitlin Long confirmed that the transaction took place on the Ethereum mainnet.
How the parties split the work
Hazel was jointly developed by Vantage and Custodia. Participate, a company under BankLabs, provided loan workflow and payment instructions. Vantage provided banking services and reserves, while Custodia handled wallets, blockchain operations, compliance, and reconciliation monitoring.
Settlement design and rollout plan
According to the Hazel white paper, the settlement model includes both on-chain records and traditional bank ledger records. Only approved participants can transact, while customer identity and account information remain off-chain.
Participate plans to offer tokenized deposits and Fedwire payment automation services to 750 banks for loan participation and syndicated loan payments.
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