VersaBank, a Canada-based bank, announced today that it plans to introduce and subsequently launch its own stablecoin, called VCAD. VersaBank’s native currency will reportedly be fully backed by Canadian dollars deposited within the bank. The Canadian bank also claims that VCAD is scheduled to be the first digital currency that represents fiat that is then backed and issued by a registered North American bank.
According to VersaBank, this venture is made possible by its partnership with Canada Stablecorp, a collaborative project between the blockchain company Mavennet and investment fund management firm 3iQ. Jean Desgagne, the Stablecorp CEO, commented on this joint venture by stating that the incoming VCAD aims to address two of the most glaring issues within the traditional crypto market: security and volatility. While the bank will work with the Canadian dollar (CAD) in this project, it notes that it may soon try its hands out with the USD and Euro in the near future.
The bank then noted that it plans to render VCAD available to the public as soon as the next few months by supplying the stablecoin directly to its financial partners in exchange for more CAD deposits. Notably, these partners will then purportedly be able to issue VCAD directly as well. No conclusive launch date for the VCAD has been announced as of yet.