Participate, Vantage Bank & Custodia Announce Groundbreaking First On-Chain Loan Participation Payment Collaboration

Participate

Vantage Bank

Custodia

The three companies provide a solution to automate institution-to-institution loan sales, servicing and payments using tokenized deposits and stablecoins.

Financial institutions need sensible use-cases that leverage the fundamental strength of distributed ledger and blockchain.”

— Matt Johnner

LITTLE ROCK, AR, UNITED STATES, April 7, 2026 /EINPresswire.com/ -- Participate announced a collaboration with Hazel, Vantage Bank and Custodia, providing Hazel with access to a network of more than 600 banks to support what the companies believe will be the world’s first on-chain loan participation collaboration using tokenized deposits for financial institution-to-financial institution payment automation and post-sale servicing.

The collaboration brings together three complementary capabilities: Vantage Bank as the reserve manager, Custodia as the provider of blockchain operations and infrastructure, and Participate as the automation and orchestration layer connecting loan participation workflow, payment instructions, instructing tokenized deposit activity, and post-sale servicing visibility. With this collaboration, borrower payments, reconciliation, transaction details, current balance updates, automated remittance instructions, and movement of tokenized deposits occurs in synchronous fashion in a matter of minutes.

Together, the companies are modernizing a process that has historically relied on manual wires, spreadsheets, email notices, and delayed reconciliations, taking days. The new model is designed to automate loan participation funding and payments while giving authorized parties near real-time visibility into transaction activity, remittances, balances, and servicing updates.

“Financial institutions need sensible use-cases that leverage the fundamental strength of distributed ledger and blockchain,” said Matt Johnner, President and Co-Founder of Participate. “This collaboration applies tokenized deposits and stablecoins to a real banking use case: automating loan participation payments and post-sale servicing in a way that is faster, more transparent, synchronous, and easier for financial institutions to operationalize. Participate is proud to lead the automation layer and orchestration behind this loan participation payment via digital asset breakthrough.”

Under the collaboration, Hazel Network’s tokenized deposit capabilities will enable bank-to-bank movement of funds and settlement in a real-world participation use case.

“Our partnership with Participate addresses a real need for banks today—saving time and eliminating manual tasks. At the same time, it introduces tokenized deposits in a way that feels practical and familiar, helping banks stay ahead and prepared for what’s possible as the industry moves toward a tokenized future” said Shawn Main, Executive Vice President and Chief Business Architect Officer at Vantage Bank.

“Bank-to-bank is an ideal use case for smart contract-based payments and introducing them into Participate’s automated loan participation workflows for both originations and servicing give banks an ideal way to start working with this new technology,” said Caitlin Long, Founder and CEO of Custodia Bank.

For financial institutions, the opportunity is straightforward: automate a traditionally manual process, improve transparency for all parties, and accelerate participation payments and servicing updates from days to minutes.

About Participate

Participate is the first patented, fully automated platform designed specifically for managing loan participations, syndications, and loan sales from origination through post-sale servicing. The platform helps financial institutions optimize balance sheets, reduce concentration risk, increase fee income, and automate the operational complexity of selling and servicing loans. For more information, visit participateloan.com

About Vantage Bank

Vantage Bank is prepared for what’s possible! We are dedicated to delivering sophisticated, innovative financial solutions while maintaining a strong commitment to the communities we serve. Headquartered in Texas, we operate across the state, with locations in Dallas, El Paso, Fort Worth, Houston, Laredo, the Rio Grande Valley, and San Antonio. Our suite of powerful digital tools and services rivals those offered by fintech’s and similar non-bank financial services companies. We operate within a safe and sound environment—providing peace of mind and the financial security that only a regulated institution can offer. By integrating advanced technology with personalized service, Vantage Bank empowers individuals and businesses to achieve their financial goals while upholding the highest standards of compliance and community engagement. Visit us at www.vantage.bank.

About Custodia

Custodia is a Wyoming special purpose depository institution formed to serve as a compliant bridge to the U.S. dollar payments system and a custodian of digital assets that can meet the strictest level of institutional custody standards. Custodia is required to fully comply with all applicable laws and regulations, including the Bank Secrecy Act and federal “know your customer,” anti-money laundering and related laws and regulations. Custodia also complies with Wyoming’s special purpose depository institution and digital asset laws, which include requirements that fiat deposits be 100% reserved and that Custodia meet the strictest investor protections in the digital asset industry. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Matt Johnner
Participate
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