Custodia and Vantage Bank are proposing Hazel Network, a tokenized dollar that behaves like a bank deposit inside a participating-bank consortium and turns into a cash/Treasury-backed stablecoin when it leaves that perimeter. The system has run on Ethereum since March and is in bank testing, with broad bank and customer availability targeted for Q4 2026. The pitch is obvious: give banks onchain payments without bleeding deposits to stablecoin issuers, as the stablecoin market sits around $315B versus $251B a year ago.

TLDR by @Benthic