VersaBank Conference: VBNK Details Deposit Tokens, Stablecoin Custody and U.S. Receivables Growth

VersaBank (NASDAQ:VBNK) outlined its approach to digital assets and tokenized banking services during a presentation at OTC Markets’ Virtual Investor Conferences Digital Asset Conference, emphasizing that the company views blockchain-based products as an extension of its long-running, fully digital banking model.

David Taylor, the bank’s president and founder, described VersaBank as a 30-year-old institution with a cloud-based, branchless, business-to-business model that he said provides significant operating leverage as it grows—particularly following its entry into the U.S. market. Taylor said the bank has grown assets over the past three years at an average compounded rate of 27% to nearly CAD 6 billion, and he cited “nearly CAD 36 million in 2025 of ordinary income.” He attributed the growth to a receivable purchase financing program launched in Canada and expanded to the U.S. last year.

Core banking growth and U.S. receivables expansion

Taylor said VersaBank’s U.S. rollout of its receivable purchase program gained traction quickly, noting that by the end of its first year of U.S. operations in 2025, the bank had “more deal flow” in the U.S. than in Canada, where it has operated the program for about 18 years. In the Q&A, he also referenced achieving a year-end target of $290 million in receivable purchase program value.

Looking ahead, Taylor said VersaBank is signing additional partners and working to improve the product with an “AI-driven, instant purchase of the receivables” capability. He described the concept as enabling partners to sell receivables as they are generated, with an internal AI module monitoring incoming data against a “pre-approved credit box” and other credit parameters.

Deposit tokens vs. stablecoins: VersaBank’s focus areas

Taylor framed the “digital asset revolution” as affecting banking most directly in two functional areas: deposits and payments. He said banks are facing deposit pressure as wealth transfers to younger generations, citing commentary from a banking service provider that he said estimated roughly 70% of generational wealth transfers go to non-bank alternatives such as crypto and stablecoins. On payments, he said markets continue to seek faster, less expensive, more secure transactions—capabilities he argued can be addressed via tokenized deposits and stablecoins.

He outlined how the bank distinguishes tokenized deposits from stablecoins, emphasizing that tokenized deposits are “one-to-one” representations of actual bank deposits recorded on the bank’s own ledger and mirrored onto blockchains. Taylor said key attributes include:

• Support by the same liquidity and regulatory framework as typical bank deposits
• Ability to pay interest (which he said stablecoins are not allowed to do)
• Potential eligibility for deposit insurance (as bank deposits)
• Use in institutional applications such as cross-border and B2B payments, digital asset settlement, and on-chain liquidity management
• Placement on the bank’s balance sheet, which he said makes them a source of low-cost or no-cost deposits to fund lending and growth

By contrast, Taylor said stablecoins are issued by non-banks, cannot pay interest, are not eligible for deposit insurance, and must be invested in low-risk assets such as Treasury bills held with third parties, meaning the issuer cannot use the funds for lending activities. He added that VersaBank intends to pursue both deposit token and stablecoin-related opportunities.

Real Bank Deposit Tokens and cross-border payments pilot

Taylor said VersaBank has been working in the digital asset space for nearly a decade and has had “tested working deposit tokens since 2021.” He said the bank previously shelved its deposit token initiative after submitting an application for a U.S. banking license, but is now conducting an integrated cross-border pilot to demonstrate functionality in a more favorable regulatory environment.

In the Q&A, Taylor said VersaBank is piloting tokenized deposits in both Canada and the U.S., including a refreshed effort in Canada and ongoing discussions with U.S. regulators. He said he expected announcements “within about a month or so on both sides of the border,” noting holiday-season timing had slowed engagement.

Taylor highlighted cross-border payments as the use case drawing the most attention and said VersaBank is positioned as the only bank with an existing deposit token in both the U.S. and Canada. He pointed to the scale of U.S.-Canada trade activity—$1.3 trillion—as a key market backdrop and said the opportunity could translate into “billions” or “tens of billions” in low- or no-cost deposits.

Licensing deposit-token technology to community banks

Taylor also described a strategy to license or “white label” deposit token technology for other banks. He said community banks have approached VersaBank and are waiting for the company to “blaze the trail” through regulatory processes. Taylor said VersaBank can host a large number of deposit tokens issued by other community banks and suggested each bank could issue its own token, while VersaBank could provide infrastructure and potentially an exchange facility for bank-to-bank token liquidity. He said the bank would seek to earn “a couple of little basis points” while keeping friction low to encourage liquidity.

On regulatory requirements, Taylor said he does not believe new legislation or regulation is required to launch tokenized deposits in either country because the deposits remain “real bank deposits” recorded on the bank’s ledger, with blockchain serving as an evidentiary and transaction layer—analogizing the shift to online banking records from paper statements. He also said banks and regulators would likely need data over time to assess the “stickiness” of tokenized deposits before fully relying on them to fund longer-duration lending in the same way as traditional deposits.

Stablecoin custody and divestiture of cybersecurity unit

Separately, Taylor said VersaBank aims to serve as a custodian for third-party stablecoins, arguing that stablecoins require a specialized custodian to hold and safeguard assets and that banks are well positioned for that role. He cited a projection that stablecoins in circulation could grow as high as $4 trillion by 2030 and said the bank expects custody to become a meaningful, low-cost revenue stream and a source of low-cost deposits.

During the Q&A, Taylor provided an update on the bank’s planned sale of its cybersecurity services business, DRT Cyber, which he characterized as separate from the digital asset initiatives. He said the bank is “well down the path” of receiving bids and expects to receive bids “in the next month,” describing the unit’s work as penetration testing for “high-value targets” such as railways, police departments, and energy companies.

On deposit insurance, Taylor said he expects Real Bank Deposit Tokens would be covered by deposit insurance in both the U.S. and Canada, but noted he would use the word “expect” until formal approval is received. He said deposit insurance is important for maintaining confidence and stability in the banking system.

About VersaBank (NASDAQ:VBNK)

VersaBank is a Canadian Schedule I chartered bank that operates as a fully digital institution, offering a range of deposit and lending solutions through its proprietary technology platform. Headquartered in London, Ontario, the bank has chosen to forego a traditional branch network in favor of online and digital distribution, enabling it to serve clients across Canada and the United States with efficiency and lower overhead.

The bank’s primary business activities include the origination and securitization of commercial loans, equipment financing, residential mortgages and construction loans.