Overview
- The firms published a white paper on June 18, 2026 that lays out Hazel Network’s technical and legal design and sets a goal of broad bank and customer availability by Q4 2026.
- Hazel issues a single, dual-character token that legally functions as a tokenized bank deposit inside a participating consortium and automatically converts to a GENIUS Act–compliant stablecoin when held outside the consortium.
- The protocol uses a “Compliance by Construction” model with three screening layers—off‑chain fiat screening, blockchain analytics, and an on‑chain sanctions oracle—that gate transfers before on‑chain settlement and enforce reserve limits.
- A reference implementation has run on Ethereum mainnet since March 2026, the project completed the first of four production test phases, and multiple large pilots are under way including a use case with Participate for loan‑participation payments.
- Hazel is built to plug into banks’ existing systems via multiple integration options from basic to full API coupling, but wider adoption will depend on consortium onboarding, bank technical integration, and operational pilots; the white paper also notes patent claims and Custodia’s prior regulatory fights as background to the effort.