Versabank, a Canadian digital bank with an approach to commercial customers, has begun to try a tokenized deposit that, according to the bank, provides a safer and more compatible alternative to the stables.
The pilot, which is executed through the Bank’s American subsidiary, Versabak USA, will test a US dollar version of the Bankchain digital tank receipts from the bank. (DDRS) Technology. Each token, USDVB of brand, represents a US dollar kept in deposit in Versabak USA.
The Simulate thousands of small value transactions, first internally and then with selected external partners. Tokens will be managed through the Bank’s digital and electronic wallet platforms and will be broadcast on Ethereum Algorand and star Blockchains.
While Stablecoins, cryptographic tokens with prices linked to fiduciary currencies such as the US dollar have captured most of the attention, banks are also exploring tokenized deposits to make money transfers more efficient using blockchain rails. A private company issues a Stablecoin, such as the USDC USDC or the USDT of Circle, is issued by a private company and supports the value of tokens with reserves maintained in a third -party custodian. Meanwhile, a tokenized deposit is a liability of a regulated bank and is subject to bank rules.
Earlier this year, Custody and Vantage Bank threw the demand deposits of the US dollar in Ethereum, while JPMorgan tried his deposit token at the Coinbase layer 2 layer networks.
Unlike most stable, Versabank said that their tokens are insured by the federal government and can gain interest, making them functionally similar to traditional deposits, but with the additional efficiency of blockchain based settlement.
The bank said he hopes to finish the pilot at the end of 2025 and will seek the approval of the Office of the Comptroller of La Moneda. (OCC) before any public launch.
Read more: Stablecoins, Tokenization exerted pressure on the money of the money market: Bank of America
