USBC Partners with Uphold and Vast Bank to Launch World's First Retail Tokenized Deposits
TL;DR
USBC's partnership with Uphold and Vast Bank creates global access to FDIC-insured tokenized deposits, offering a competitive edge in secure digital finance with revenue growth potential.
USBC tokenized deposits use blockchain technology to create digital representations of real U.S. dollars held at Vast Bank, with FDIC insurance eligibility and regulatory compliance built in.
This partnership expands global access to secure U.S. banking services, bringing FDIC-insured accounts and financial protections to individuals worldwide through innovative blockchain technology.
USBC is launching the world's first retail tokenized deposits, combining traditional banking security with blockchain efficiency for instant global payments starting in 2026.
USBC, Inc. has announced a preliminary partnership with Uphold and nationally-chartered Vast Bank to launch the world's first retail tokenized deposit offering, marking a significant advancement in digital finance. This collaboration will provide global access to U.S. dollar-denominated tokenized deposits and U.S. dollar deposit accounts for individuals, enterprises, and financial institutions worldwide.
The partnership enables Uphold's customers to open U.S. dollar deposit accounts beginning in 2026, allowing them to hold and transfer digital representations of their U.S. dollar deposits at Vast Bank on USBC's privacy-preserving blockchain. Enabled by Vast Bank's national charter and compliance framework, USBC tokenized deposits are designed to make the underlying deposits eligible for FDIC insurance in accordance with applicable limits and requirements, while also being subject to Reg E protections.
USBC Chairman and CEO Greg Kidd, who has spent nearly a decade developing the building blocks for compliant tokenized U.S. dollar deposits, described the announcement as a defining moment for both USBC and the future of digital dollars. The combination of regulatory strength from the national bank charter with blockchain technology's scalability and accessibility represents a significant innovation in expanding the U.S. dollar's global influence.
Unlike stablecoins that lack meaningful consumer protections, USBC tokenized deposits are on-chain digital representations of real U.S. dollars issued by a bank regulated under U.S. law. This breakthrough product offers three key advantages: unparalleled safety through FDIC insurance eligibility and Reg E protections, regulatory confidence through compliance with U.S. financial regulations, and programmable finance capabilities including instant settlement, real-time international payments, and smart contract automation.
The partnership is expected to create substantial value for USBC shareholders by accelerating revenue through global access to U.S. bank accounts, amplifying shareholder value through scalable revenue models, solidifying regulatory leadership by setting industry standards for compliant digital money, and expanding technology licensing opportunities for additional financial institutions. USBC has published a whitepaper outlining its vision for tokenized deposits, available at http://usbc.xyz/i/whitepaper.
The companies have entered into a non-binding Memorandum of Understanding to finalize partnership terms during the fourth quarter of 2025, subject to board and regulatory approvals. This initiative represents a transformative pathway for moving money globally within a fully compliant and regulated environment, potentially reshaping how individuals and institutions worldwide access and utilize U.S. dollar banking services through blockchain technology.
Curated from citybiz