VersaBank Launches Pilot for Tokenized Deposits Using Blockchain Technology
VersaBank, a Canadian digital bank, is testing a tokenized deposit system through its U.S. subsidiary, VersaBank USA. Key details include:
- The pilot involves a blockchain-based Digital Deposit Receipts (DDRs) tech, branded USDVB, representing one U.S. dollar held at VersaBank USA.
- The trial will simulate thousands of small-value transactions internally and with select external partners.
- Tokens will be managed through the bank’s digital vault and e-wallet platforms, issued on Ethereum, Algorand, and Stellar blockchains.
- Unlike typical stablecoins, VersaBank's tokens are federally insured and can earn interest.
- The bank plans to complete the pilot by the end of 2025 and will seek approval from the Office of the Comptroller of the Currency before launching publicly.
This initiative aligns with banks exploring tokenized deposits for efficient money transfers using blockchain technology.