– Start of Testing Marks Important Milestone in Path
to Planned Full Commercial Launch of VCAD –
LONDON, ON, Aug. 17, 2021
/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."
ABOUT VCAD
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.
ABOUT STABLECORP
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.
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
under the symbol VB and its Series 1 Preferred Shares trade under
the symbol VB.PR.A.
Visit our website at: www.versabank.com
Follow VersaBank on Facebook, Instagram, LinkedIn and
Twitter.
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SOURCE VersaBank