– Start of Testing Marks Important Milestone in Path to Planned Full Commercial Launch of VCAD –
LONDON, ONTARIO/CNW/ – VersaBank (“VersaBank” or the “Bank”) (TSX: VB), a leader in digital banking and cyber security solutions, today announced that it has initiated closed ecosystem testing of its VCAD Digital Deposit Receipts (DDRs) to validate the security, processes, procedures and protocols. Testing is being conducted in partnership with VersaBank’s partner for VCAD, Stablecorp, with transactions initially occurring on the public and live Stellar blockchain, and plans to execute similar transactions on the Algorand blockchain in the near future.
Under the closed ecosystem testing, the Bank employed a de minimis amount of its own Canadian dollar funds as a deposit to issue the equivalent digital deposit receipts in the form of 50,000 VCADs, which have been “minted” using the Stellar blockchain. A limited number of designated VersaBank personnel were provided with these VCADs to test real-world use by engaging in actual person-to-person transactions, such as paying for theoretical goods or service. The VersaBank personnel will, as part of ongoing tests, redeem VCADs, which will be “burned”, and the Canadian dollars on deposit released. As will be the case when VCAD is commercially launched to the general public, critical steps in the VCAD minting and burning processes are verified using VersaBank’s VersaVault®, which enables regimented approval of such steps by multiple personnel, ensuring the integrity of the processes and transactions. Any VCADs minted during the closed ecosystem test will at all times be in the control of VersaBank.
“Our closed ecosystem testing represents an important milestone toward our planned commercial launch of VCAD,” said David Taylor, President and Chief Executive Officer, VersaBank. “We look forward to reporting on the outcome of the testing when completed.”
VCAD is VersaBank’s revolutionary highly-encrypted Digital Deposit Receipt (DDR) offering, with each VCAD unit representing a one-dollar deposit with the Bank. Facilitated by state-of-the-art blockchain technology, VCAD is easily transferable, enabling it to be used as a digital currency, with the highest level of stability and security amongst digital currencies available today, with each VCAD represented by a deposit with an investment-grade issuer.
Stablecorp was founded by 3iQ, Canada’s largest cryptoasset manager and Mavennet, a leader in blockchain development. Stablecorp is a leading Canadian fintech firm building bank-grade blockchain technology. In February 2021, Stablecorp entered into a strategic partnership with VersaBank, an A rated Canadian Schedule 1 bank, to develop VCAD. VCAD is a Digital Deposit Receipt issued using VersaBank’s VersaVault® technology. This bank backed up issuance model makes VCAD unique in terms of auditability, transparency, and reliability in the global stablecoin space.
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 under the symbol VB and its Series 1 Preferred Shares trade under the symbol VB.PR.A.
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