Overview
- The white paper, released June 18, formalizes Hazel Network as a single token that functions as a bank deposit when held inside a member bank consortium and automatically becomes a GENIUS Act‑compliant stablecoin when held outside the consortium.
- Hazel embeds a “Compliance by Construction” model that gates every transfer with fiat screening, blockchain analytics, and an on‑chain sanctions oracle to meet banks’ AML and sanctions controls before on‑chain settlement.
- The reference implementation has been live on Ethereum since March 2026, the project completed test phase one of four, multiple large pilots are underway including a Participate integration for loan participation payments, and the consortium targets full availability in Q4 2026.
- The design aims to prevent stablecoin drain of bank cores by keeping reserves at issuing banks and programmatically reconverting tokens at the consortium boundary, with on‑chain checks that block transfers exceeding verified reserve balances.
- Hazel uses Infinant’s Interlace platform, offers three bank onboarding models from a no‑core Basic option to full API integration, and relies on Custodia’s Wyoming SPDI structure plus issued U.S. patents, but it still faces adoption, legacy core integration, compliance‑operations, and regulator scrutiny as pilots scale.