Canadian bank VersaBank is to launch a stablecoin called VCAD that it plans for use in commerce.
- In an announcement Wednesday, the bank claims the Canadian-dollar linked VCAD is the first digital currency issued by and backed by deposits with a North American bank.
- For the launch, VersaBank partnered with Stablecorp, a joint venture between crypto asset manager 3iQ and blockchain development firm Mavennet – both also Canada-based.
- Currently, the digital currency is only being issued by VersaBank to financial intermediary partners in exchange for Canadian dollar deposits.
- The partners will then offer VCAD directly to individuals and businesses for use in commerce. VCAD will be redeemable for Canadian dollars as required after that, the bank said.
- "As North America's first bank-issued ‘stablecoin’ VCAD offers consumers and businesses the ability to adopt and leverage the benefits of digital currency and blockchain-based assets without the volatility of traditional currencies, alongside the security of a value-backed asset that the cryptocurrency world has long demanded," said David Taylor, president of VersaBank and its cybersecurity subsidiary, DRT Cyber.
- The bank said it expects VCAD to be available to the general public in coming months.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.