Participate, Vantage Bank, and Custodia Enable First On-Chain Loan Participation Payment

On April 7, 2026, Participate, Vantage Bank, and Custodia announced a groundbreaking collaboration to execute the world's first on-chain loan participation payment using tokenized deposits and stablecoins for bank-to-bank automation. Vantage Bank serves as the reserve manager, Custodia provides the blockchain infrastructure, and Participate contributes workflow automation for loan participation processes. The partnership leverages Custodia's Hazel Network to enable synchronous tokenized deposit movements, replacing legacy manual processes such as wire transfers and spreadsheet-based reconciliation.

Loan sales, servicing, payments, reconciliation, and balance updates that previously took days can now be completed in minutes with real-time visibility. This represents a significant milestone in applying distributed ledger technology to traditional banking workflows. The collaboration signals growing institutional appetite for blockchain-native infrastructure in core banking operations, particularly in the loan participation market.

Financial terms of the arrangement were not disclosed.