LONDON, ON, Nov. 29, 2021
/PRNewswire/ - VersaBank ("VersaBank" or the "Bank") (TSX: VB)
(NASDAQ: VBNK), a leader in digital banking and cyber security
solutions, today announced meaningful expansion to the scope and
functionality of the closed ecosystem testing of its revolutionary
Digital Deposit Receipts ("DDRs"). As an investment-grade
issuer-backed digital asset, represented by actual US or
Canadian-dollar deposits with VersaBank, the Bank's DDRs are
expected to be a superior, regulatory compliant alternative to
current "stablecoins" for mainstream financial applications.
The expanded closed ecosystem testing, undertaken with
VersaBank's blockchain technology partner Stablecorp, adds US
dollar-denominated DDRs ("VUSD") (in addition to Canadian
dollar-denominated DDRs ("VCAD") as previously announced), the
Algorand and Ethereum blockchains (in addition to the Stellar
Blockchain as previously announced), as well as testing with a
Receipt Distributor, who will become one of the primary
distributors of the Bank's DDRs at commercial launch.
"We are very pleased with the progress and outcomes to date of
our Digital Deposit Receipt closed ecosystem testing, which is
demonstrating that the DDR model is functioning as designed and
managing digital assets in a secure, trusted and attestable
manner," said David Taylor,
President and Chief Executive Officer, VersaBank.
"VersaBank's DDRs are a natural extension of our existing digital
deposit services that, when placed on a public blockchain and
supported by the security of the Bank's own VersaVault digital
asset security technology, become a completely unique, game
changing, financial innovation."
Mr. Taylor added, "Over the last several months, we have seen
increasing calls in North America
and globally from both the private and public sectors for oversight
and regulation of private company-issued stablecoins. As a
Schedule I (Federal) Bank with an investment grade rating,
VersaBank's DDRs are very well aligned with the direction that such
regulation appears to be heading. We are proud to be the first
mover in this space and are very enthusiastic about the potential
of DDRs."
Alex McDougall, President of
Stablecorp commented, "Existing stablecoin models have run into
significant challenges making headway into mainstream financial
applications due to lack of transparency and regulatory oversight.
DDRs are a "step-function" improvement over existing models and
Stablecorp is proud to be the blockchain technology partner to
VersaBank."
"The Algorand Foundation is excited to see how this new,
regulated approach to stable coins will accelerate crypto-currency
adoption," said Sean Lee, Chief
Executive Officer, Algorand Foundation. "We're delighted to
continue supporting VersaBank and Stablecorp, as they drive world
leading financial innovation on Algorand."
To date, VersaBank and Stablecorp have successfully "minted"
DDRs on the Stellar and Algorand blockchains, and designated
VersaBank personnel have successfully used minted DDRs to conduct
mock transactions. Supporting these activities, VersaBank and
Stablecorp have fully integrated the Bank's VersaVault digital
asset security technology into the minting and burning workflow
across all blockchains. Any and all VUSDs and VCADs minted
within the closed ecosystem testing continue to be – at all times -
in the control of VersaBank.
Concurrent with the expanded testing, VersaBank's DDR system is
undergoing a SOC (System and Organization Controls) 2 Audit, which
is intended to verify the non-financial reporting controls,
relating to security, availability, processing integrity,
confidentiality and privacy of the system. The expanded
closed ecosystem testing will continue until the completion of the
SOC 2 Audit, following which VersaBank intends to commercially
launch VCAD and VUSD, which is currently targeted for early
2022.
ABOUT VERSABANK'S DIGITAL DEPOSIT RECEIPTS (DDRs)
VersaBank's VUSD and VCAD are revolutionary highly-encrypted
Digital Deposit Receipts (DDRs) with each DDR unit representing a
one-dollar deposit with the Bank.
Facilitated by state-of-the-art blockchain technology, VUSD and
VCAD are easily transferable, enabling them to be used as
frictionless digital currencies, but with the highest level of
stability and security available today.
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 Inc. 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
(TSX) under the symbol VB and on NASDAQ under the symbol VBNK. Its
Series 1 Preferred Shares trade on the TSX under the symbol
VB.PR.A.
ABOUT CANADA
STABLECORP
Canada Stablecorp Inc. is a leading Canadian blockchain
technology company focusing on building and scaling
next-generation, bank-grade digital asset solutions. Founded by
3iQ, Canada's largest digital
asset manager, and Mavennet, a global leader in blockchain
development, Stablecorp combines deep institutional financial
experience with top-tier blockchain technology expertise to provide
unique and highly implementable solutions to top financial
institutions.
Visit our website at: www.versabank.com
Follow VersaBank on Facebook, Instagram, LinkedIn and
Twitter.
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SOURCE VersaBank