Versabank Expands Successful Closed Ecosystem Testing for Revolutionary Digital Deposit Receipts: Adds US Dollar Receipts, Algorand and Ethereum Blockchains, and Receipt Distributor to Testing


VersaBank (“VersaBank” or the “Bank”) (TSX: VB) (NASDAQ: VBNK), a leader in digital banking and cyber security solutions, today announced meaningful expansion to the scope and functionality of the closed ecosystem testing of its revolutionary Digital Deposit Receipts (“DDRs”).  As an investment-grade issuer-backed digital asset, represented by actual US or Canadian-dollar deposits with VersaBank, the Bank’s DDRs are expected to be a superior, regulatory compliant alternative to current “stablecoins” for mainstream financial applications.

The expanded closed ecosystem testing, undertaken with VersaBank’s blockchain technology partner Stablecorp, adds US dollar-denominated DDRs (“VUSD”) (in addition to Canadian dollar-denominated DDRs (“VCAD”) as previously announced), the Algorand and Ethereum blockchains (in addition to the Stellar Blockchain as previously announced), as well as testing with a Receipt Distributor, who will become one of the primary distributors of the Bank’s DDRs at commercial launch.

“We are very pleased with the progress and outcomes to date of our Digital Deposit Receipt closed ecosystem testing, which is demonstrating that the DDR model is functioning as designed and managing digital assets in a secure, trusted and attestable manner,” said David Taylor, President and Chief Executive Officer, VersaBank.  “VersaBank’s DDRs are a natural extension of our existing digital deposit services that, when placed on a public blockchain and supported by the security of the Bank’s own VersaVault digital asset security technology, become a completely unique, game changing, financial innovation.”

Mr. Taylor added, “Over the last several months, we have seen increasing calls in North America and globally from both the private and public sectors for oversight and regulation of private company-issued stablecoins.  As a Schedule I (Federal) Bank with an investment grade rating, VersaBank’s DDRs are very well aligned with the direction that such regulation appears to be heading. We are proud to be the first mover in this space and are very enthusiastic about the potential of DDRs.”

Alex McDougall, President of Stablecorp commented, “Existing stablecoin models have run into significant challenges making headway into mainstream financial applications due to lack of transparency and regulatory oversight. DDRs are a “step-function” improvement over existing models and Stablecorp is proud to be the blockchain technology partner to VersaBank.”

“The Algorand Foundation is excited to see how this new, regulated approach to stable coins will accelerate crypto-currency adoption,” said Sean Lee, Chief Executive Officer, Algorand Foundation. “We’re delighted to continue supporting VersaBank and Stablecorp, as they drive world leading financial innovation on Algorand.”

To date, VersaBank and Stablecorp have successfully “minted” DDRs on the Stellar and Algorand blockchains, and designated VersaBank personnel have successfully used minted DDRs to conduct mock transactions. Supporting these activities, VersaBank and Stablecorp have fully integrated the Bank’s VersaVault digital asset security technology into the minting and burning workflow across all blockchains.  Any and all VUSDs and VCADs minted within the closed ecosystem testing continue to be – at all times – in the control of VersaBank.

Concurrent with the expanded testing, VersaBank’s DDR system is undergoing a SOC (System and Organization Controls) 2 Audit, which is intended to verify the non-financial reporting controls, relating to security, availability, processing integrity, confidentiality and privacy of the system.  The expanded closed ecosystem testing will continue until the completion of the SOC 2 Audit, following which VersaBank intends to commercially launch VCAD and VUSD, which is currently targeted for early 2022.


Algorand Foundation Announces Grant to LoginID


The Algorand Foundation announced today, support for a grant awarded to LoginID, a FIDO-certified authentication provider. The grant will allow LoginID to research building a technical path towards enabling its suite of APIs and SDKS for the Algorand ecosystem.  For Algorand developers and enterprises this means utilizing FIDO-certified authentication for a one touch execution of a smart contract, which will not require plugins or downloads to complete.  Integration of FIDO also provides the benefit of ‘Transaction Confirmation’, a digital signature and receipt binding the individual’s biometric to the transaction.

At the heart of the Algorand blockchain is a unique and powerful protocol known as Pure Proof-of-Stake, created by MIT’s Silvio Micali. Using this protocol, the Algorand blockchain is a unique combination of high performance, scale, security, guaranteed transaction finality and all built on a carbon negative, sustainable platform. The Algorand network has now grown to over 13 million accounts and is supporting over 1 million transactions a day, with zero downtime since launch. The Algorand Foundation is committed to building the most robust and innovative ecosystem around this amazing, public blockchain and bringing one-touch smart contract execution will be a powerful addition to the toolkit of Algorand developers.

The Algorand Foundation is delighted to welcome LoginID to the ecosystem of the Algorand network. Providing FIDO certified, one touch smart contract execution to Algorand developers and enterprises will enable  any customer to execute a smart contract by using the biometrics on their device, without any downloads or plugins needed.  Given there are over 4B devices globally that support FIDO today, this is a significant step in making Algorand available to all.”  said Sean Lee, CEO Algorand Foundation.

“Algorand has really started to accelerate, helping businesses in the DeFi and commerce space, areas where we have expertise and can add a lot of value.  LoginID will help lower friction, and make blockchain technology easier to interact when developers integrate our solution. We have recently seen attacks on standard forms of authentication such as SMS.  Our solution will help give Algorand developers the tools to create the most frictionless, secure interactions for their customers” says Jim Brown, CRO and Co-founder of LoginID.