VersaBank Launches USDVB Tokenized Deposit Pilot Program in the US

VersaBank has launched a USDVB tokenized deposit pilot program in the US, featuring Digital Deposit Receipts (DDRs) with FDIC insurance and interest-earning capability. USDVB tokens will operate on Algorand, Ethereum, and Stellar blockchains and will be managed through VersaBank's proprietary VersaVault digital vault and VersaView e-wallet platforms. The pilot program is expected to end in 2025, with a commercial launch planned for 2026, offering banks and financial institutions a superior alternative to traditional stablecoins.

VersaBank, a Canadian digital bank with a focus on business clients, has launched a USDVB tokenized deposit pilot program in the United States. The pilot, run through VersaBank USA, aims to test USDVB tokens on the Ethereum, Algorand, and Stellar blockchains, providing an alternative to stablecoins [1].

USDVB tokens represent one U.S. dollar held on deposit at VersaBank USA and are federally insured, allowing them to earn interest. Unlike stablecoins, which are typically issued by private companies, USDVB tokens are a liability of a regulated bank and subject to banking rules [1].

The pilot program will simulate thousands of transactions of small value, first internally and then with select external partners. Tokens will be managed through VersaBank's proprietary VersaVault digital vault and VersaView e-wallet platforms [1].

VersaBank expects to complete the pilot by the end of 2025 and seeks approval from the Office of the Comptroller of the Currency (OCC) before any public launch [1]. The bank believes that its tokenized deposits represent a superior alternative to stablecoins, offering the safety and soundness of traditional banking with the efficiency and cost savings of blockchain technology [1].

References:
[1] https://www.coindesk.com/business/2025/08/27/versabank-tests-tokenized-deposits-on-algorand-ethereum-and-stellar-in-u-s-pilot