VersaBank , a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, announced it has commenced a refresh of its previously completed pilot program for its Digital Deposit Receipts ("DDRs") in Canada (the "CADVB Pilot Refresh"). The purpose of the CADVB Pilot Refresh is to confirm the previously demonstrated functionality, security, and operational integrity of the Bank's DDRs, including compliance with all Canadian money laundering and terrorist financing legislation, in the context of advancements and enhancements of the Bank's core banking technology platform since the completion of the initial DDR Pilot Program in Canada in 2022.

VersaBank also announced that the CADVB Pilot Refresh will be integrated with the Bank's recently initiated pilot program for the US-dollar version of its DDRs (the "USDVB Pilot Program"). The integration of the two pilot programs is intended to demonstrate VersaBank's ability to conduct high-speed, low-cost, highly encrypted and secure cross-border payment transactions using DDRs as 1:1 representations of actual deposits with the Bank. VersaBank expects both the CADVB and USDVB pilot programs to be completed by the end of calendar 2025 with commercial launch to occur as soon as possible thereafter, subject to regulatory obligations as may apply.

David Taylor, Founder and President, VersaBank, commented, "Nearly CAN$1 trillion dollars in trade is transacted between the United States and Canada each year. As the only nationally licensed bank with tokenized deposit technology and capabilities on both sides of the border, our proprietary Digital Deposit Receipts represent an exceptional near-term opportunity for the Bank by providing businesses of all sizes with blockchain-secured, high-speed, low-cost foreign exchanges transactions, with the critical advantage of legally permitted interest¹ payments and deposit insurance, which non-bank issued stablecoins are not allowed to provide per the US GENIUS Act."

Mr. Taylor added, "Beyond the foreign exchange opportunity, our DDRs are the ideal, market-ready solution for US banks, payment providers, large retailers and other financial businesses to quickly, seamlessly and cost-effectively implement their blockchain-based digital commerce strategies. In addition to the significant potential benefit to our own banking operations, we are aggressively pursuing multiple opportunities to monetize this fully developed, proprietary and unique technology."