VersaBank (“VersaBank” or the “Bank”) (TSX: VB), a leader in digital banking and cyber security solutions, today announced that it has initiated closed ecosystem testing of its VCAD Digital Deposit Receipts (DDRs) to validate the security, processes, procedures and protocols. Testing is being conducted in partnership with VersaBank’s partner for VCAD, Stablecorp, with transactions initially occurring on the public and live Stellar blockchain, and plans to execute similar transactions on the Algorand blockchain in the near future.
Under the closed ecosystem testing, the Bank employed a de minimis amount of its own Canadian dollar funds as a deposit to issue the equivalent digital deposit receipts in the form of 50,000 VCADs, which have been “minted” using the Stellar blockchain. A limited number of designated VersaBank personnel were provided with these VCADs to test real-world use by engaging in actual person-to-person transactions, such as paying for theoretical goods or service. The VersaBank personnel will, as part of ongoing tests, redeem VCADs, which will be “burned”, and the Canadian dollars on deposit released. As will be the case when VCAD is commercially launched to the general public, critical steps in the VCAD minting and burning processes are verified using VersaBank’s VersaVault®, which enables regimented approval of such steps by multiple personnel, ensuring the integrity of the processes and transactions. Any VCADs minted during the closed ecosystem test will at all times be in the control of VersaBank.
“Our closed ecosystem testing represents an important milestone toward our planned commercial launch of VCAD,” said David Taylor, President and Chief Executive Officer, VersaBank. “We look forward to reporting on the outcome of the testing when completed.”