VersaBank announced that its wholly-owned subsidiary, VersaBank USA, has launched an internal pilot program for the USDVB Digital Deposit Certificate (DDR) in the United States. The DDR is a tokenized bank-issued deposit that is backed 1:1 by actual cash deposits and is legally eligible to pay interest and enjoy FDIC insurance, positioning it as a compliant alternative to stablecoins.

The pilot program will be run on the Algorand, Ethereum, and Stellar blockchains, initially for internal testing before gradually expanding to partner depositors and their clients. It is expected to be completed by the end of 2025, after which OCC approval will be sought for commercialization. VersaBank President David Taylor stated that this is the first tokenized deposit product issued and operated by a nationally licensed bank in the United States, and will provide a more secure and compliant solution for cross-border payments and digital finance. (PRNewswire)