VersaBank USA Launches Pilot Program To Test USD-Backed Digital Deposit Receipts
In Brief
VersaBank USA has launched an internal pilot program to test its USD-backed tokenized deposits, aiming to combine blockchain efficiency with traditional banking security and regulatory compliance ahead of a planned commercial rollout.
North American digital banking institution VersaBank has announced that its US subsidiary, VersaBank USA, has begun an internal pilot program to test its USDVBs, a US dollar version of its proprietary Digital Deposit Receipts (DDRs). These DDRs, developed using the bank’s own technology, are tokenized, bank-issued deposits that represent a one-to-one digital equivalent of cash deposits. They are designed to offer enhanced security, regulatory compliance, and stability compared to stablecoins, while integrating the efficiency, programmability, and cost-effectiveness of blockchain technology with the safeguards of traditional banking.
Building on a similar pilot previously conducted in Canada, the US program will evaluate the technical functionality, security, and compliance of USDVBs within a US regulatory framework, including adherence to the Bank Secrecy Act and Office of Foreign Assets Control requirements. The program represents a key step toward potential commercialization, which will be pursued following the Office of the Comptroller of the Currency’s “non-objection.”
The pilot will be conducted in phases, beginning with internal low-value transaction testing and later expanding to limited external deployment with selected deposit partners and their clients. Each USDVB will correspond to one U.S. dollar held on deposit with VersaBank USA. Issuance, redemption, and management will be carried out through VersaBank’s proprietary VersaVault digital vault, operating on Algorand, Ethereum, and Stellar blockchains, with user access managed through its VersaView e-wallet. Completion of the pilot is anticipated by the end of 2025, with commercial rollout expected soon after.
VersaBank Introduces Regulated Tokenized Deposits And Digital Vault For Secure Financial And Data Management
Digital Deposit Receipts, or DDRs, are proprietary tokenized deposits created by VersaBank that operate as blockchain-based equivalents of conventional bank deposits, designed to improve efficiency, programmability, and security in financial transactions. Issued on a one-to-one basis against fiat currency held on deposit with the bank—or with other institutions utilizing the system—these instruments are backed by a federally chartered bank, may accrue interest, and are federally insured, positioning them as a more secure and regulated alternative to stablecoins. Developed in collaboration with law enforcement agencies, DDRs are intended to serve as a reliable solution for mainstream financial use cases such as digital payments, in line with the increasing adoption of e-wallets and the shift toward digital asset management by both individuals and businesses.
VersaVault, meanwhile, represents the first digital vault of its kind, offering organizations a secure platform for the storage and protection of sensitive information, including confidential documents, proprietary data, source code, and blockchain-based assets, thereby addressing the demand for regulated custody solutions in the digital asset ecosystem.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
