LONDON,
ON, Nov. 14, 2022 /PRNewswire/
- VersaBank ("VersaBank" or the "Bank") (TSX: VBNK) (NASDAQ:
VBNK), a North American leader in business-to-business digital
banking, as well as technology solutions for cybersecurity, today
announced that it has initiated an internal pilot program of a new
Digital Deposit Receipts ("DDRs"), which will be undertaken
exclusively within Canada. The
purpose of the internal pilot program is to validate the security,
processes, procedures and protocols of the Bank's new DDR model
called "CADV" (for the Canadian-dollar version). The pilot
program will limit deposits and transfers to senior VersaBank
executives and members of the Bank's board of directors, all of
whom reside in Canada.
VersaBank's DDRs are highly encrypted one-for-one digital
representations of actual cash on deposit with the Bank. The DDRs
are placed on selected blockchains (initially Algorand and
Stellar), enabling them to be transferred as a claim on the cash
deposit. Under the new model, DDR accounts (or "e-wallets")
will be hosted by VersaBank (as opposed to being hosted by an
external third party), enabled and secured by VersaBank's
VersaVault® technology. Access to VersaBank DDR accounts
is enabled through VersaBank's "Viewer", a software tool developed
exclusively for the Bank.
"Amidst the rapidly evolving macro and regulatory environments,
we are piloting a new DDR model internally, having developed our
own e-wallet solution to further ensure the security of DDR
deposits, and align our model with what we believe to be the future
direction of both customer demand and industry regulation," said
David Taylor, President and Chief
Executive Officer, VersaBank.
Implementation of the pilot program, which has been approved by
VersaBank's board of directors, is not-material to VersaBank's
banking operations.
About VersaBank
VersaBank is a Canadian Schedule I chartered (federally
licensed) bank with a difference. VersaBank became the world's
first fully digital financial institution when it adopted its
highly efficient business-to-business model using its proprietary
state-of-the-art financial technology to profitably address
underserved segments of the Canadian banking market in the pursuit
of superior net interest margins while mitigating risk. VersaBank
obtains all of its deposits and provides the majority of its loans
and leases electronically, with innovative deposit and lending
solutions for financial intermediaries that allow them to excel in
their core businesses. In addition, leveraging its internally
developed IT security software and capabilities, VersaBank
established wholly owned, Washington,
DC-based subsidiary, DRT Cyber Inc., to pursue significant
large-market opportunities in cyber security and develop innovative
solutions to address the rapidly growing volume of cyber threats
challenging financial institutions, multi-national corporations and
government entities on a daily basis.
VersaBank's Common Shares trade on the Toronto Stock Exchange
("TSX") and Nasdaq under the symbol VBNK. Its Series 1 Preferred
Shares trade on the TSX under the symbol VBNK.PR.A.
Forward-Looking
Statements
VersaBank's public communications often include written or oral
forward-looking statements. Statements of this type are included in
this document, and may be included in other filings with Canadian
securities regulators or the U.S. Securities and Exchange
Commission, or in other communications. All such statements are
made pursuant to the "safe harbor" provisions of, and are intended
to be forward-looking statements under, the United States Private
Securities Litigation Reform Act of 1995 and any applicable
Canadian securities legislation. The statements in this press
release that relate to the future are forward-looking statements.
By their very nature, forward-looking statements involve inherent
risks and uncertainties, both general and specific, many of which
are out of our control. Risks exist that predictions, forecasts,
projections, and other forward-looking statements will not be
achieved. Readers are cautioned not to place undue reliance on
these forward-looking statements as several important factors could
cause actual results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include, but are not
limited to, the strength of the Canadian economy in general and the
strength of the local economies within Canada in which we conduct operations; the
effects of changes in monetary and fiscal policy, including changes
in interest rate policies of the Bank of Canada; changing global commodity prices; the
effects of competition in the markets in which we operate;
inflation; capital market fluctuations; the timely development and
introduction of new products in receptive markets; the impact of
changes in the laws and regulations pertaining to financial
services; changes in tax laws; technological changes; unexpected
judicial or regulatory proceedings; unexpected changes in consumer
spending and savings habits; the impact of wars or conflicts
including the crisis in Ukraine and the impact of the crisis
on global supply chains ; the impact of new variants of COVID-19
and the Bank's anticipation of and success in managing the risks
implicated by the foregoing. For a detailed discussion of certain
key factors that may affect our future results, please see our
annual management's discussion and analysis ("MD&A") for the
year ended October 31, 2021.
The foregoing list of important factors is not exhaustive. When
relying on forward-looking statements to make decisions, investors
and others should carefully consider the foregoing factors and
other uncertainties and potential events. The forward-looking
information contained in this document and the related MD&A is
presented to assist our shareholders and others in understanding
our financial position and may not be appropriate for any other
purposes. Except as required by securities law, we do not undertake
to update any forward-looking statement that is contained in this
document and the related MD&A or made from time to time by the
Bank or on its behalf.
Visit our website at: www.versabank.com
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SOURCE VersaBank