VersaBank launches tokenized deposit pilot program in U.S.

VersaBank’s (VBNK) wholly owned subsidiary, VersaBank USA, has launched an internal pilot program in the U.S. for its USDVBs, the US-dollar version of its proprietary Digital Deposit Receipts. Developed exclusively by VersaBank using its proprietary technology, DDRs are bank-issued tokenized deposits, which are highly encrypted 1:1 digital representations of actual cash deposits that aim to provide superior security, stability, and regulatory compliance compared to stablecoins. They combine the safety and soundness of traditional banking with the efficiency, cost savings, security, and programmability of blockchain technology. The purpose of the USDVB Pilot Program is to demonstrate the functionality, security, and operational integrity of VersaBank USA DDRs in a US dollar environment and to ensure compliance with US banking regulations. The launch of the USDVB Pilot Program is a critical milestone in VersaBank USA’s preparations to commercialize its USDVB in the United States. VersaBank USA will seek the Office of the Comptroller of the Currency’s “non-objection” prior to launching commercially. VersaBank USA’s USDVB Pilot Program will follow a phased testing program involving thousands of transactions of de minimis value with controlled internal testing and expanding to include limited external deployment with designated deposit partners and their clients. USDVBs will be issued at a rate of 1 USDVB for each US$1.00 on deposit with VersaBank USA.