Infrastructure provider for on-chain finance Uphold has entered into a preliminary strategic collaboration with Vast Bank and USBC to roll out US bank deposit accounts.
As detailed by the three financial organisations, tokenized deposit accounts at Vast Bank are set to be available to Uphold’s customers as of the beginning of 2026. These customer bank deposits at Vast Bank will be represented by USBC, which was among the first financial institutions to develop retail tokenized USD deposits, and recorded on the latter’s privacy-preserving blockchain. The digital US dollars are built to allow the underlying deposit to be eligible for FDIC insurance coverage via the issuing bank and Reg E protections.
Further details on the collaboration
The partnership will enable Uphold customers to hold, manage, move, and spend their USD as tokenized dollars and benefit from the capabilities delivered by blockchain-powered finance, such as more efficient, always-on, and more cost-effective financial services with global reach. When compared to stablecoins, tokenized deposits can present more benefits, as they include the features associated with blockchain and the safety and stability of the traditional banking system. Additionally, while stablecoins are synthetic dollars, mostly issued by fintech companies, USBC is an on-chain representation of real dollars and is issued by a US bank.
According to Uphold’s officials, the collaboration enables its customers around the world to get direct access to a US bank deposit account, supported by tokenized deposits and digital identity. The move positions Uphold among the first crypto platforms to provide its customers with real USD on-chain, issued by a nationally chartered bank, and supported by the capabilities and consumer protections of the US banking system. When it comes to Vast Bank, the financial institution aims to advance the market by facilitating a progressive, identity-led deposit account with on-chain functionality, while USBC underlined its commitment to providing access to people globally to a US bank account and real USD while creating more value for shareholders.
Furthermore, USBC has been working on the technology behind its vision for over ten years, with the financial institution now being able to launch tokenized deposits to market with its two partners, Uphold and Vast Bank. In addition to the collaboration announcement, USBC has released a white paper, emphasising the objective for tokenized deposits and detailing its plans.
