-- VersaBank Partners with Stablecorp
to Complete Development of Digital Currency Offering – Will Create
Significant New Low Cost Deposit Source for VersaBank as it
Experiences Record Loan Growth –
LONDON, ON, Feb. 24, 2021
/PRNewswire/ - VersaBank (TSX: VB) ("VersaBank" or the "Bank"), a
North American leader in business-to-business digital banking and
technology solutions for cybersecurity, today announced it plans to
launch a strong encryption based digital currency (cryptocurrency)
represented one-to-one by a Canadian dollar bank deposit with the
Bank, to be known as VCAD. VCAD is expected to be the first
digital currency to represent a fiat currency, as well as the
first in the world digital currency issued by and backed by
deposits with a North American bank. As such, VCAD will offer
the highest level of stability and security amongst all digital
currencies in the market today.
![VersaBank Logo (CNW Group/VersaBank) VersaBank Logo (CNW Group/VersaBank)](https://mma.prnewswire.com/media/1443677/VersaBank_Versabank_to_Launch_VCAD__World_s_First_Bank_issued__D.jpg)
VersaBank has entered into a strategic partnership with
Stablecorp, a joint venture between Canada's leading crypto asset manager, 3iQ,
and Mavennet, a Canadian leader in blockchain development, to
commercially launch VCAD. VCAD is based on VersaBank's proprietary
banking software and the digital currency issuance processes for
VCAD will be securely managed via VersaVault®, VersaBank
subsidiary, DRT Cyber Inc.'s ("DRT Cyber"), world leading digital
bank vault designed to secure digital assets. The Bank is
targeting public availability of VCAD in the coming months.
Consistent with VersaBank's highly efficient,
business-to-business model, VCAD will be issued by VersaBank to
financial intermediary partners in exchange for Canadian dollar
deposits with the Bank utilizing "smart contracts", a more highly
encrypted iteration of the Bank's existing digital deposit
contracts. VersaBank's partners will then offer VCAD directly
to individuals and businesses, who can use them for commerce and
redeem them for Canadian dollars at any time. VCAD creates a
significant new low-cost deposit source for VersaBank as it
experiences record loan growth.
"As North America's first
bank-issued "stablecoin", VCAD offers consumers and businesses the
ability to adopt and leverage the benefits of digital currency and
blockchain-based assets without the volatility of traditional
currencies, alongside the security of a value-backed asset that the
cryptocurrency world has long demanded," said David Taylor, President of both VersaBank and
its cyber security subsidiary, DRT Cyber. "Consumers and businesses
purchasing products and services with VCAD will finally know the
precise value of their digital currency when executing these
transactions."
Mr. Taylor added, "VersaBank was the very first digital bank
nearly 30 years ago and has continuously been a pioneer in digital
banking in the decades since. Digital currencies are the
natural evolution of the world's payment systems, and the launch of
VCAD is a natural extension of our digital banking operations as we
once again leverage our in-house technology to lead the banking
industry. We are proud to work with our partner, Stablecorp,
on this industry first."
"We are thrilled to partner with VersaBank, a Schedule I
Canadian bank, to offer a digital currency that addresses the two
major shortcomings of the traditional cryptocurrency market –
volatility and security," said Jean
Desgagne, CEO, Stablecorp. "VCAD provides consumers with not
only the security afforded by an underlying deposit with a Canadian
chartered bank but also the comfort of knowing that each VCAD
issued or redeemed will always have one-to-one value with the
Canadian dollar. With such clear benefits, we are highly
confident in the demand for VCAD as digital currencies increasingly
become part of mainstream financial transactions."
In addition to VCAD, under their partnership, VersaBank and
Stablecorp plan to work together towards the development and launch
of "VUS" and "VEuro", deposit-based, US dollar and Euro versions of
the VersaBank digital currency.
ABOUT VERSABANK
VersaBank is a Canadian Schedule I chartered bank with a
difference. VersaBank became the world's first fully digital
financial institution when it adopted its highly efficient
business-to-business model using its proprietary state-of-the art
financial technology to profitably address underserved segments of
the Canadian banking market in the pursuit of superior net interest
margins while mitigating risk. VersaBank obtains all of its
deposits and provides the majority of its loans and leases
electronically, with innovative deposit and lending solutions for
financial intermediaries that allow them to excel in their core
businesses. In addition, leveraging its internally developed IT
security software and capabilities, VersaBank established wholly
owned, Washington, DC-based
subsidiary, DRT Cyber to pursue significant large-market
opportunities in cyber security and develop innovative solutions to
address the rapidly growing volume of cyber threats challenging
financial institutions, multi-national corporations and government
entities on a daily basis.
VersaBank's Common Shares trade on the Toronto Stock Exchange
under the symbol VB and its Series 1 Preferred Shares and Series 3
Preferred Shares trade under the symbols VB.PR.A and VB.PR.B
respectively.
About Canada Stablecorp
Canada Stablecorp is a joint venture between 3iQ, Canada's largest cryptoasset manager and
Mavennet, a leader in blockchain development. QCAD was Stablecorp's
first product release and is a digital asset with the stability of
the Canadian dollar and backed by Canadian dollars. Launched in
February 2020, QCAD was the first
ever major Canadian-dollar Stablecoin designed for the mass market.
For more information visit our website at:
https://www.stablecorp.ca.
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SOURCE VersaBank