VersaBank is testing USDVB, a tokenized deposit token representing U.S. dollars held at the bank, on Ethereum, Algorand, and Stellar blockchains. Unlike stablecoins, the tokens are federally insured, earn interest, and function as bank liabilities subject to banking regulations.
VersaBank USA has launched a pilot program for USDVB, a tokenized deposit where each token represents one U.S. dollar on deposit at the bank. The pilot will simulate thousands of transactions across Ethereum, Algorand, and Stellar blockchains using the bank's Digital Deposit Receipts technology. USDVB differs from stablecoins by being federally insured, earning interest, and operating as a regulated bank liability rather than a private company-issued token. The bank plans to complete the pilot by end of 2025 and will seek OCC approval before public launch, positioning tokenized deposits as a more compliant alternative to traditional stablecoins for blockchain-based settlement.
