VersaBank, the Canadian digital bank, has started the commercial phase of its U.S. tokenized deposit program. VersaBank USA will issue VUSD, a U.S.-dollar token that represents a bank deposit on a blockchain; the bank describes it as interest-paying and eligible for FDIC insurance. The company announced the move on October 15.
VersaBank plans to invest the deposits initially in zero risk-weighted U.S. Treasury bills and to support growth of its U.S. Structured Receivable Program. It also intends to list VUSD on digital asset exchanges "as soon as feasible" and to license the technology, owned by its subsidiary DRT Cyber, to U.S. community and regional banks.
VUSD has not yet been issued or listed. The announcement does not name the blockchain, give deposit targets or set a launch date.