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VersaBank, a leading North American bank in terms of business-to-business (B2B) digital banking and technology solutions for cybersecurity, seeks to launch a deposit-based digital currency. A press release revealed this news on February 24. Dubbed VCAD, the cryptocurrency will reportedly have strong encryption and will be pegged to Canadian dollar deposits with the bank in a one-to-one ratio.
According to the news release, VersaBank teamed up with Stablecorp, a joint venture between 3iQ, Canada’s leading digital asset manager, and Mavennet, a renowned Canadian blockchain developer, to launch VCAD. The coin would be based on the bank’s banking software. VersaBank’s subsidiary, DRT Cyber Inc., will reportedly manage VCAD’s issuance through VersaVault, a leading digital bank vault for cryptocurrencies.
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Reportedly, VCAD’s attributes will make it the first-ever bank-issued digital currency that is backed by actual deposits. To this end, VersaBank projects that VCAD will offer unprecedented stability and security in the crypto market. Allegedly, VersaBank aims to launch VCAD publicly in the next few months.
Staying ahead of the pack
According to the president of both VersaBank and DRT Cyber, VersaBank pioneered digital banking almost three decades ago. Tyler added that it is only natural for the current financial system to evolve into digital currencies. As such, the bank’s launch VCAD seeks to maintain its reputation, while keeping up with the times.
However, VersaBank’s partnership with Stablecorp will not end upon VCAD’s launch. The duo reportedly seeks to roll out VUS and VEuro, the US dollar and Euro versions of VCAD.
Commenting on this partnership, StableCorp’s CEO, Jean Desgagne, said, VCAD would address volatility and insecurity, which are the primary challenges of the crypto market. He added that the coin’s 1:1 backing by the Canadian dollar would offer its users a lot of comfort. Coupled with the increasing adoption of digital currencies, Desgagne believes that VCAD’s properties would see it achieve mass adoption rapidly.