The Canadian bank asserted that VCAD would practically turn out to be “the first digital currency to represent a fiat currency” unveiled and supported by a financial institution in North America.
VersaBank stated that it had collaborated with Canada Stablecorp, an entity created via partnership between blockchain focused firm Mavennet and investment fund manager 3iQ, to introduce the “stablecoin.”
The bank intends to provide public access to VCAD in the months ahead through the issue of digital currency against Canadian dollar deposits for tis intermediate financial associates.
The associates will be tasked with the job of offering VCAD straight away to commercial establishments and individuals.
Jean Desgagne, CEO of stablecorp, stated that the cryptocurrency is planned to be created to resolve “two major shortcomings of the traditional cryptocurrency market,” i.e. security and volatility. VersaBank also intends to create digital currencies pegged to the greenback and the euro, named VUS and VEuro, respectively.
VersaBank is one among the totally digitized financial entities, implying that there are no physical branches to carry out day-to-day operations. Furthermore, its associate firm launched a digital safety locker for storing cryptocurrencies.
Although not supported by a bank, Mavennet and 3iQ has already rolled out a regulated stablecoin backed by the Loonie. Earlier in February, the entities launched QCAD, an ERC-20 token. Currently, there are 170,000 tokens in circulation and traded at a price of $0.7850, translating to a value of $133,000, as per data provided by Etherscan.
Furthermore, In Canada, VCAD is not the standalone Canadian dollar backed by stablecoin. Coinsquare is backing eCAD, while TrustToken has launched TrueCAD (TCAD) token.