VersaBank, a digital only bank with $3.5 billion in total assets, has unveiled its US tokenized deposit pilot, which it initially plans to run internally. It involves digital depository receipts backed by bank deposits, referred to as USDVB.
“Our USDVB DDRs, developed in conjunction with law enforcement, represent the next step in the evolution of digital assets for both deposits and payments, and, importantly, a superior alternative to stablecoins based on their one-for-one representation of actual cash on deposit with our Bank, the legal ability to pay interest, and FDIC insurance,” said David Taylor, President of VersaBank.
The company appears to be planning to offer it as a solution to US banks, payment providers and other financial businesses. Despite not being a huge company, it chose to develop its own proprietary technology. The solution integrates with three permissionless blockchains, Algorand, Ethereum and Stellar, with plans to complete the pilot by the end of the year and launch as soon as possible thereafter. VersaBank says it intends to get a “non-objection” from the Office of the Comptroller of the Currency (OCC) beforehand.
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