Digital Dollars.
Bank Native.
Built on Trust.
Your fastest, safest way to deploy tokenized deposits and stablecoin capabilities; real-time settlement, built-in checks, and clear reporting.
How is Hazel Different from a Normal Bank Account?
What Does Tokenized Mean?
When a deposit is tokenized, a digital representation of it is recorded on a shared ledger, a blockchain.
Think of it like a digital cashier's check - your bank creates it, it represents real dollars, and when it's redeemed, the underlying funds settle between banks through the Federal Reserve.
The ledger is public in structure but encrypted in practice - no sensitive customer information is exposed. It is essentially an internal transfer mechanism that happens to move faster, settle in real time, and carry instructions along with it.
The dollars live on your balance sheet. The blockchain makes the rails faster.
A tokenized deposit is still a deposit. Unlike Bitcoin or other crypto assets, tokenized deposits are not investments. They are dollars, treated as cash equivalents, held on your balance sheet, and backed by the full weight of your institution. Wondering how it works? Reference the table below to see what changes and what stays exactly the same.
What stays the same: | What changes: |
|---|---|
FDIC-insured, per recent regulatory guidance | Settles in seconds, not days |
Recorded on your bank's balance sheet | Moves 24/7 with no cut-off windows |
Your regulators, your compliance controls | Carries programmable compliance controls via smart contracts |
Your customer relationship | Visible in real time with a full audit trail |
Backed by real dollars, not a speculative asset | Can connect to your core, AML, and online banking platforms directly |
One Unified Token, Two Legal Distinctions
The Hazel Platform offers one unified token with capabilities for both tokenized deposits and stablecoin transfers, transitioning seamlessly between transactions depending on need. These are not two versions of the same thing. They work differently, sit on different balance sheets, and serve different payment requirements.
Tokenized Deposits
The dollars never leave your institution. A tokenized deposit is your existing deposit liability, represented on a digital ledger so it can move in real time between verified participants inside the Hazel network. Your bank issues it, holds it, and is responsible for it — exactly like any other deposit.
Best for: Treasury sweeps, payroll, supplier payments, inter-affiliate transfers, commercial payments between known business customers.
What doesn't change: Your deposit base. Your lending capacity. Your regulatory framework. Your customer's FDIC coverage
Stablecoin Transfers
When a customer initiates a stablecoin transfer, those funds move off your balance sheet and are held by Custodia Bank in the form of treasury securities, not your deposits. This is what enables stablecoins to travel outside the Hazel network to counterparties you don't know.
Best for: Cross-border payments, self-custody users, payments to counterparties outside traditional banking rails.
What this means for your bank: You don't hold the liability, but you keep the customer relationship. Funds can easily return to your balance sheet when the stablecoin is redeemed back into a deposit.
Why is this Important for Your Financial Institution ?
Deposits are Leaving
Stablecoins are processing over $8.9 trillion in monthly volume. When commercial customers move funds onto these rails, roughly 88% of that money never returns to a bank balance sheet. That is lost lending capacity for your community.
Customers Want Solutions
Businesses want faster payments, cross-border transfers without foreign exchange friction, and the ability to connect payments directly to their accounting platforms. Right now, fintechs are offering this. Your financial institution can too.
You Have what Fintechs Don't
Trust. Regulatory standing. Customer relationships built over decades. Hazel gives you the technology layer; you bring everything else. Your customers get the latest payment capabilities inside the security of their bank.
Stablecoins and tokenized deposits have resulted in a $0.60 - $1.60 loss in credit per $1 from traditional banking systems. According to the Treasury Advisement Borrowing Committee, TABC, there is potential for $6.6 trillion in deposit erosion. Be the solution - banks are the trust layer, we are the answer.
What Does Hazel Offer Your Customers ?
Tokenized deposits settle in real time, 24/7. No more waiting on cut-off windows or correspondent bank delays. Your commercial customers move capital when they need to, not when the rails allow it.
Smart contracts attach conditions to payments, pay on delivery, on inspection, on a verified milestone. No manual steps, no disputes. Just a verifiable, automated outcome with a full audit trail.
Track every tokenized payment in real time - confirm delivery, recipient, and timing with confidence. Audit-ready reconciliation is built into the platform from day one.
A tokenized deposit is still your bank's deposit. Your existing deposit, liquidity, capital, and risk governance applies. The technology changes the rails, not the regulatory framework.
Banks settle directly and atomically, removing correspondent bank dependencies and delays. Token movement and settlement happen as one coordinated event, not two separate processes.
Stablecoins offer access to those excluded from traditional U.S. banking and those who prefer cash-like payment instruments or self-custody. Expand your footprint without expanding your risk framework.
Hazel's Core Concepts
Hazel’s Foundational Features
Platform access included Everything you need to begin, tailored to the needs of your institution. Hazel does not require integration with your bank's core. Daily GL files link your Hazel deposits to your existing core - making access seamless and familiar.
Operating accounts provided Reserve and operational account setup to manage reserves and create multiple Bank owned tokenized accounts for clearing and operations.
Expand Platform Capabilities at Your Pace Customers access Hazel through your bank's online banking platform using SSO. As Hazel is utilized, flexible plans are offered so that you can adjust as your institution grows.
Reliable Compliance Built In
Integrated screening logic We route payments through AML/OFAC checks and wallet screening.
Audit‑ready data capture You get structured logs for reviews. Verify on-chain activity with off-chain information. Your Bank is in control without relying on third parties.
Process‑aligned runbooks We map to your existing controls, integrating legal addendums, risk frameworks, runbooks, and testing strategies.
Tokenized Deposit
A deposit liability represented on blockchain rails and used between known participants. We provide the ledger and recordation technology you need to use tokenized deposits as a regulated liability that supports real‑time, on‑chain settlement. A tokenized deposit represents your bank's deposit liability, as long as it satisfies the statutory definition of 'deposit' under the Federal Deposit Insurance Act. The technology doesn't change what it is.
Private bank money - a normal deposit, issued on a blockchain.
Issued and used by banks.
Moves deposit liabilities across banks within the network.
Facilitates payments between known customers.
Stablecoin
A digital token designed to maintain a stable value. We help you use stablecoins to move value beyond a single institution’s perimeter, with clear obligations, controls, and predictable settlement behavior. On Hazel, the payment stablecoin is issued by Custodia Bank, with 1:1 reserves and attestation.
Enables businesses and individuals to self-custody their own assets
Moves funds across borders, including to known and unknown counterparties.
Full KYC isn't always required until the asset re-enters the U.S. bank system.
Based on the current GENIUS Act interpretation.
AML/OFAC Screening
Hazel provides real‑time checks that screen payments for suspicious activity, sanctions exposure, and wallet screening services. We perform these screenings within Hazel so you can adopt tokenized payments without adding new compliance systems.
Reserve and Operating Accounts
An account structure that supports program liquidity and aligns token activity with your books and records. We help you manage balances, reconciliation, and reporting with clarity and confidence.
Institution Console
The operational interface your team uses to view activity, manage permissions, and monitor tokenized deposit and stablecoin workflows. We give you a clearer, more efficient way to handle daily administration.