VersaBank, a Canadian digital bank, has initiated a pilot program to test a tokenized deposit known as USDVB, which is equivalent to one U.S. dollar deposited at its U.S. subsidiary, VersaBank USA. This pilot aims to explore enhancements in transaction efficiency using the Ethereum, Algorand, and Stellar blockchains as alternatives to traditional stablecoins. Unlike typical stablecoins, the USDVB token is federally insured and can accrue interest, providing a more compliant financial product governed under banking regulations. The pilot will involve multiple phases, beginning with simulated transactions internally and then expanding to select external partners. The bank plans to carry out the pilot until the end of 2025 and seeks approval from the Office of the Comptroller of the Currency (OCC) prior to the public launch. This initiative highlights the bank's efforts to innovate in the digital finance space by offering a safer, regulated alternative to the expanding stablecoin market.

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