How Our
Bank-led, Bank-run, Bank-ready
Infrastructure Works

Tokenized deposits and stablecoins are moving real money right now - outside traditional bank rails. Hazel gives your institution the infrastructure to offer these capabilities from inside the regulated system, with your regulators and your customers' trust already intact.

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The Hazel Approach

Hazel sits between your bank and the future of money movement. The platform is built around four capabilities that work together to meet the financial system where it is today and bridge to tomorrow.

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Orchestration

Manages every transaction across instruments, rails, and counterparties. When a payment moves, Hazel coordinates every leg of it automatically.

Reconciliation

Continuous, audit-ready reconciliation across your core banking system, Hazel's accounting ledger, and the blockchain. Your books stay aligned without a manual translation layer.

Settlement

Moves the underlying dollars between banks and the Fed in real time as tokens move on-chain. The token movement and the dollar settlement happen as one coordinated event, not sequentially.

Connectivity

API connections into your existing infrastructure, plus rails into both blockchain networks and traditional fiat payment systems from a single integration point.

Hazel's Platform Architecture

How it Works - Hazel's Architecture Diagram
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Existing Banking Infrastructure

At the top of the diagram are the systems banks already rely on every day: core banking, AML/KYC, treasury, ERP, and online banking platforms. Hazel is designed to integrate directly into this existing infrastructure rather than replace it.

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The Hazel Platform

The center layer represents the Hazel Platform itself - the operational network that brings together settlement, reconciliation, compliance, wallet management, token issuance, reporting, and connectivity into a single banking-focused system.

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Blockchain Network Connectivity

Hazel connects into blockchain ecosystems like Ethereum, Solana, and Lightning, allowing banks to interact with tokenized deposits, smart contracts, wallets, and digital asset transactions through a regulated operational layer.

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Your Application

Alongside blockchain infrastructure, Hazel also connects to traditional payment rails including FedNow, FedWire, ACH, SWIFT, and SEPA - enabling interoperability between modern digital asset infrastructure and existing global payment systems.

How Tokenized Deposits Move

TD Diagram
1: The deposit stays on your balance sheet.

When a customer initiates a tokenized payment, their funds move from their regular checking account into a Tokenized Deposit Account at your bank. A token is minted on the Hazel blockchain network to match that dollar value exactly. The underlying deposit stays at your institution.

2: Compliance and validation occur, with tokens moving at the same time as the cash.

The token transfers instantly across the Hazel network to the recipient's wallet at their bank — 24/7, in real time. Meanwhile, Hazel coordinates dollar settlement between Bank A and Bank B through pre-funded accounts held at Vantage Bank, acting like a correspondent bank account.

3: The recipient's bank sees it immediately.

The recipient's Tokenized Deposit Account is credited the moment the token arrives. Their bank's books update in real time. No waiting for end-of-day batch processing, no settlement risk in the window between payment and receipt.

4: The token is burned if removed from a TDA product or converted to cash.

When the recipient converts back to a regular deposit — or the payment is complete — the token is burned. Nothing remains in circulation. One token, one payment, one clean audit trail from start to finish.

How Stablecoin Transfers Move

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1: Initially, it starts the same way as a tokenized deposit.

The tokenized deposit product enables customers to have tokenized deposits that are interoperable and also act as stablecoins when outside the Bank.

2: At the network boundary, the liability shifts.

When the payment needs to travel outside the Hazel member bank network — cross-border, to a self-custody wallet holder, or to a counterparty outside traditional banking rails — Custodia Bank steps in as the issuer. The funds move off your balance sheet and are held by Custodia in the form of treasuries, cash and other high quality liquid assets . Your bank is no longer the obligor.

3: The stablecoin reaches anyone, anywhere.

The recipient receives a Custodia-issued, GENIUS Act-compliant stablecoin in their wallet. Settlement is instant. No foreign exchange friction, no correspondent bank intermediary, no multi-day delay. Your customer's counterparty receives value immediately regardless of where they are.

4: The relationship stays with you.

The customer is able to move the stablecoin outside across multiple wallets. If the customer wants to send those funds back to a Bank, its easy, there is no exchange and no intermediary. Simply send the coin back directly to the originating bank or a participating bank.

Learn More About Hazel

Whether you want to do a deep dive into Hazel's compliance suite or get back to the basics of understanding the platform, we are here to guide you through it.

Hazel's Compliance Suite

Learn More About Hazel's Compliance Suite:

  1. Security & Controls

  2. Privacy & Data Collection

  3. Interoperability & Standards

  4. Operational Resilience

  5. BSA/AML & Sanctions Enablement

The Compliance Suite

Needing More Foundational Information About Hazel?

Visit Our Essentials Page to Learn About:

  1. How Hazel is Different from a Normal Bank Account

  2. The Distinctions Between a Tokenized Deposit and a Stablecoin

  3. Why Hazel is Important for Your Financial Institution

  4. What Hazel Offers Your Customers

  5. Hazel's Core Concepts

  6. In-Depth Pricing and Integration

The Hazel Essentials Page

Ready to Own Your Future?

Become a member institution of the Hazel Network and be a part of shaping what comes next. Hazel is the only bank-led, bank-run, and bank-ready infrastructure that lets you tokenize with compliance, settlement, and reconciliation built in.

Schedule a Demo