“Digital Bank Versabank Unveiled Plans to Expands ITS BLOCKCHAIN-Based Digital Deposit Receipts to the US with Regulatory Oversight in Focus.”, – WRITE: www.coindesk.com
The Pilot, Run Through The Bank’s US Subsidiary Versabank USA, Will Trial A US Dollar Version of the Bank’s Bank’s Blockchain-Basted Digital Deposit Receipts (DDRS) Tech. Each Token, Branded USDVB, Represents One US dollar Held on Deposit at Versabank USA.
The Program Will Simulate Thousands of Transactions of Small Value, First Internally and Teen Select External Partners. Tokens will be managed through the Bank’s Digital Vault and e-Wallet Platforms and Issued on the Ethereum Eth$ 4,588.12Algorand Algo$ 0.2534 and Stellar Xlm$ 0.3838 Blockchains.
While Stablecoins, Crypto Tokens with Prices Tied to Fiat Currencies Like The Us Dollar, Have CAPTURED MOST OF THE ATHOS Efficient using Blockchain Rails. A Stablecoin, Like Circle’s USDC or Tether’s USDT, Is Typically Issued by a Private Company and Backs The Tokens’ Value With Reserves Held at A Third-Party Custodian. Meanwhile, a tokenized deposit is a liability of a regulated Bank and Subject to Banking Rules.
Earlier this year, Custodia and Vantage Bank Tokenized Us Dollar Demand Deposits on Ethereum, While Jpmorgan Tested Its Deposit Token on Coinbase’s Layer-2 Network Base.
UNLIKE MOST STABLECOins, Versabank Said Ists Tokens Are Fedorally Insured and Can Earn Interest, Making Them Functionalally Similar to Traditional Deposits But of the Adeded Efficiency
The Bank SAID IT Experts to Finish the Pilot by the end of 2025 and will seek Approval from the Office of the Currency (OCC) Before Any Public Launch.
Read More: Stablecoins, Tokenization Put Pressure on Money Market Funds: Bank of America
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Integrating USDC Into Finastra’s Payments Hub Aims to Cut Costs and Speed Up International Transfers.
- Finastra Will Integrate Circle’s USDC Stablecoin Into Its Payments Hub, ALLOWING BANKS TO SETTLE Cross-Border Transfers with The Token.
- The Integration Starts with Finastra’s Global Payplus, WHICH PROCESSES $ 5 Trillion Daily Flows, Aims To Reduce Reliance On Costly CorreSpondent Networks by Enabling Faster Annabling Faster
- The Move Highlights The Growing Interest in Stablecoins Among Financial Institutions As Alternatives to Traditional Settlement Methods.
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