VersaBank Adds FX to Tokenized Deposits for Cross-Border Payments

VersaBank, a Canadian digital bank, is enhancing its Real Bank Tokenized Deposits (RBTDs) platform by integrating foreign exchange functionality, allowing users to convert between US and Canadian dollars in real-time, 24/7, within the blockchain-based system. This feature aims to streamline cross-border transactions by bypassing slower, traditional foreign exchange rails limited by banking hours. RBTDs are digital representations of fiat deposits, backed 1:1 by customer deposits and remaining liabilities of the issuing bank, operating within the traditional banking system unlike nonbank-issued stablecoins. This update is an incremental step in commercializing their tokenized deposit system, which has been piloted since last year, reflecting a broader trend where financial institutions explore tokenized deposits for speed and efficiency in areas like cross-border payments and settlement.

(Source：Cointelegraph)