VersaBank, a Canadian digital bank, is testing a new tokenized deposit solution called Digital Deposit Receipts (DDRs). This initiative, run by its U.S. subsidiary, VersaBank USA, aims to offer a safer and more compliant alternative to traditional stablecoins.
The pilot program will use a U.S. dollar version of the token, branded as USDVB, where each token represents one U.S. dollar held on deposit at the bank. These tokens will be managed through VersaBank's secure digital vault and e-wallet platforms, and issued on the Ethereum, Algorand, and Stellar blockchains.
Unlike stablecoins, which are typically issued by private companies and backed by third-party reserves, VersaBank's tokenized deposits are a direct liability of a regulated bank. This means they are subject to strict banking regulations and are federally insured, providing a higher level of security. Additionally, the bank stated that these tokens could even earn interest, making them functionally similar to traditional bank deposits but with the added benefits of blockchain technology, such as more efficient money transfers.
The pilot will simulate thousands of transactions and is expected to conclude by the end of 2025. Following the pilot, VersaBank will seek approval from the Office of the Comptroller of the Currency (OCC) before a public launch. This move places VersaBank alongside other banks, like JPMorgan and Custodia, that are also exploring tokenized deposits to leverage blockchain for financial services.
August 2025, Cryptoniteuae