U.S. Banks Unveil the First Bank-Issued Avit Stablecoin on Ethereum Blockchain

Vantage Bank and Custodia Bank have joined to launch the first bank-issued stablecoin in the US on the Ethereum network. This development marks a remarkable first step in bringing together traditional banking and blockchain. On March 25, 2025, the bank announced Avit stablecoin pegged to the U.S. dollar on a permission-free blockchain. This effort comes in a bid to transform the payments system and improve the U.S. banking machinery by addressing global demand for a U.S. Dollar stablecoin.

Avit Stablecoin Tests Successful, Ready to Revolutionize Payments

The new Avit stablecoin works on the Ethereum blockchain, utilizing the ERC-20 standard. In recent times, the banks conducted eight regulated test transactions, including minting, transferring, and redeeming Avit tokens to ensure all protocols are being followed. Also, the banks made sure that the coin is in compliance with U.S. banking regulations laid down by the Bank Secrecy Act (BSA), the Anti Money Laundering (AML), and the Office of Foreign Assets Control  (OFAC). Vantage Bank will be managing the fiat reserves, while Custodia Bank will be the one supervising blockchain operations through its Avit Management system.

The launch of Avit has several advantages, including low transaction fees, fast processing, scalability and auditability within a regulated banking environment. Custodia’s CEO Caitlin Long has stressed how this partnership showcases how U.S. banks can integrate blockchain technology to improve payment systems, all the while adhering to the financial legalities. Jeff Sinnott, CEO of Vantage Bank, highlighted the soaring potential of stablecoins in transforming financial operations and international transactions. 

Can Avit Help the Ethereum Blockchain? Positive Impact Expected!

The significance of Avit extends beyond its immediate function. The coin symbolizes the growing trend of institutional adoption of digital assets. As more banks explore similar avenues, Avit could lead the way for large-scale acceptance of cryptocurrencies in traditional finance. The impact of Avit could be huge on the Ethereum blockchain network. With the help of traditional banking, Ethereum may see higher transaction volumes and user engagement. Other banks may also consider Ethereum for their blockchain adoptions, improving Ethereum’s reputation as a conducive platform for regulatory finance options. As ETH’s popularity grows once again, let’s quickly take a look at how it has been performing on the charts

ETH Price Analysis of the last 24 Hours: ETH Struggles to Find Buying Pressure

With a late golden cross on the previous day, the ETH price looked set for a steady climb yesterday. Ethereum started the day at $2,077 and quickly spiked up to $2,094 in twenty minutes. However, the market neared overbought conditions and ETH’s climb fell short of making any meaningful progress. A death cross at 1:00 UTC called for further decline as ETH fell to its support. Rapid action on the MACD corroborated slight fluctuations, but the overall downtrend ensued, leading ETH to find support at $2,041. 

Chart 1: analyzed by raodevansh1, published on TradingView, March 25, 2025.

As the day went on, ETH made multiple attempts to grow, but faced stern rejection at the $2,079 level. ETH found higher support at $2,055. The rest of the day, the coin continued to show range-bound oscillation. Multiple attempts were made for an upward breakout, but ETH failed to find consistent buying pressure, as even the RSI did not report overbuying for the rest of the day. ETH eventually fell to its original support at $2,041. As of the last update, ETH was on another uptrend, hoping to touch resistance again.

ETH Price Prediction: ETH Vies For $2,080

While ETH price holds steady, the lack of a strong buying trend remains a cause of concern for investors. In the last 24 hours, ETH’s movements have majorly been range-bound. If ETH is able to quickly cross resistance, further improvement will come easy. However, another rejection from the $2,079 level may result in ETH returning to the $2,041 support, or worse, lower. As institutional interest increases, ETH price predictions may also improve.