VersaBank adds foreign exchange conversion feature to tokenized deposit platform, supporting real-time conversion between US dollars and Canadian dollars

Techub News, according to Cointelegraph, Canadian chartered bank VersaBank has added a foreign exchange conversion feature to its tokenized deposit platform, allowing users to perform real-time conversions between US dollars and Canadian dollars on the blockchain system. This feature, based on Real Bank Tokenized Deposits (RBTDs), enables 24/7 real-time currency exchange, aiming to reduce reliance on traditional foreign exchange channels and enhance cross-border transaction efficiency. RBTDs are tokenized versions of bank deposits that can be transferred on blockchain infrastructure, while also serving as liabilities of the issuing bank, backed 1:1 by customer deposits. Unlike stablecoins issued by non-bank entities, they operate within the traditional banking system. This update is a step in the platform's commercialization process; VersaBank has been piloting its tokenized deposit system since last year.