VersaBank expands tokenized deposits with cross-border FX use case

The Canadian bank added USD–CAD conversion to its tokenized deposits, enabling real-time cross-border transactions as banks test blockchain-based settlement systems.

VersaBank, a federally chartered Canadian digital bank focused on institutional lending, is adding foreign exchange functionality to its tokenized deposit platform, allowing users to convert between US and Canadian dollars within a blockchain-based system.

Announced Tuesday, the upgrade enables real-time, 24/7 currency conversion using Real Bank Tokenized Deposits (RBTDs), that is, digital representations of fiat deposits issued and backed by the Ontario-based institution. 

The feature is designed to improve cross-border transactions by reducing reliance on traditional foreign exchange rails, which are often slower and limited by banking hours.

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