{"url":"https://newsforagent.com/news/2026-10-19/participate-tokenized-loan-payment-vantage-custodia","markdown_url":"https://newsforagent.com/news/2026-10-19/participate-tokenized-loan-payment-vantage-custodia.md","title":"Participate Settles First Tokenized Loan Payment in Under 3 Minutes","headline":"Participate, Vantage and Custodia Complete First Tokenized Loan Payment Between Banks","description":"Participate completed the first tokenized-deposit loan participation payment between Vantage Bank and Rio Bank.","section":"Product Launches","published_at":"2026-10-19T20:40:04+00:00","modified_at":"2026-10-19T20:40:04+00:00","author":"News Desk","key_takeaways":["Participate completed the first loan participation principal and interest payment using tokenized deposits between Vantage Bank and Rio Bank.","The payment ran through the Hazel Network and posted and settled in less than three minutes.","Participate will begin offering tokenized-deposit loan sale payment automation and Fedwire automation to its network of more than 750 banks."],"companies":[{"name":"Participate","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0052ucn/participate","website":"https://participateloan.com"},{"name":"Rio Bank","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0002qw8/rio-bank","website":"https://www.rio.bank"},{"name":"Custodia Bank","is_primary":false,"profile_url":"https://akta.pro/company-profiles/0000r52/custodia-bank","website":"https://custodiabank.com"}],"source":{"publisher":"EIN Presswire","title":"Participate, Vantage and Custodia complete first tokenized loan payment","url":"https://www.einnews.com/article/950783573/live"},"other_sources":[{"publisher":"Bloomberg","url":"https://www.bloomberg.com/news/articles/2026-10-08/citrini-says-agentic-finance-fosters-new-paradigm-for-crypto-investing"},{"publisher":"TradingView","url":"https://www.tradingview.com/news/bloomingbit:2bbefac38094b:0-sharplink-ceo-says-ethereum-to-become-core-infrastructure-for-finance-ai-within-10-years/"},{"publisher":"CoinMarketCap","url":"https://coinmarketcap.com/community/articles/6ac6acf88e74dc70618ccc74/"}],"tags":["Product Launches","Participate","Rio Bank","Custodia Bank"],"body_markdown":"[Participate](https://akta.pro/company-profiles/0052ucn/participate) said it completed the first loan participation principal and interest payment between financial institutions using tokenized deposits, moving funds between Vantage Bank and [Rio Bank](https://akta.pro/company-profiles/0002qw8/rio-bank) in less than three minutes. The company announced the transaction on October 19, 2026, according to [EIN Presswire](https://www.einnews.com/article/950783573/live).\n\n## How the Vantage and Rio Bank Payment Worked\n\nVantage Bank posted a loan payment in Participate, split principal and interest to a participant, and transmitted the funds as tokenized deposits into the buying institution's digital wallet. Loan balances and payment notices updated automatically as the funds moved. The transaction ran through the Hazel Network, the tokenized-deposit and stablecoin platform developed by Vantage Bank and Custodia.\n\nParticipate said traditional participation payments often rely on wires, spreadsheets and emailed notices, with reconciliation that can take days and still miss errors. The workflow brought together three layers through Hazel Network. Participate handled orchestration and automation, including payment allocations, instructions, automated notices and loan-balance updates. Vantage Bank provided reserves, orchestration, cash management and application programming interfaces. Custodia handled wallets, compliance, blockchain operations and automated reconciliation monitoring between the deposit ledger and blockchain.\n\nMatt Johnner, Participate president and co-founder, said banks will adopt tokenized deposits when they improve routine work and that the payment proved money and loan records can move together inside existing workflows. Shawn Main, executive vice president and chief business architect officer at Vantage Bank, said the payment helps prove value quickly and gives banks a future-proof path to on-chain technology. Caitlin Long, founder and CEO of [Custodia Bank](https://akta.pro/company-profiles/0000r52/custodia-bank), said the transaction shows community banks can use tokenized deposits to automate back-office processes and free up capital tied to settlement delays.\n\n## Participate's Loan Trading Partnerships\n\nAccording to akta.pro [company records](https://akta.pro/company-data), Participate announced a strategic partnership with Community Capital Technology in April 2025 to create what the company called the largest, most integrated loan-trading platform in the U.S., combining Participate's patented automation with Community Capital's digital marketplace. In February 2025, Participate launched what it describes as the industry-first automated loan participation platform integrated with FIS IBS Core, extending direct distribution into FIS's installed base of US banks. In January 2025, Participate achieved SOC 2 Type 2 compliance certification.\n\n## Tokenized Settlement Across the Sector\n\nCitrini Research said on October 8, 2026, that agentic finance will be built on blockchains, creating a new paradigm of fundamental crypto investing, according to [Bloomberg](https://www.bloomberg.com/news/articles/2026-10-08/citrini-says-agentic-finance-fosters-new-paradigm-for-crypto-investing). SharpLink CEO Joseph Chalom said on October 17, 2026, that Ethereum will become core infrastructure for global finance and AI within 10 years, according to [TradingView](https://www.tradingview.com/news/bloomingbit:2bbefac38094b:0-sharplink-ceo-says-ethereum-to-become-core-infrastructure-for-finance-ai-within-10-years/). Bitwise's research report positions NEAR Protocol as a settlement engine for AI applications, according to [CoinMarketCap](https://coinmarketcap.com/community/articles/6ac6acf88e74dc70618ccc74/).\n\n## What Comes Next for Hazel Network\n\nParticipate said this was the first completed payment under the collaboration it announced in April 2026 with Vantage Bank and Custodia. The collaboration gives Hazel Network access to Participate's network of more than 750 banks. Participate will begin offering tokenized-deposit loan sale payment automation and Fedwire automation for participation and syndication payments to all 750 network banks. The companies said future work could expand into more tokenized-deposit and smart-contract use cases.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}