VersaBank, a Canadian digital bank with a focus on business clients, has started testing a tokenized deposit that the bank says provide a safer and more compliant alternative to stablecoins.

The pilot, run through the bank's U.S. subsidiary VersaBank USA, will trial a U.S. dollar version of the bank's blockchain-based Digital Deposit Receipts (DDRs) tech. Each token, branded USDVB, represents one U.S. dollar held on deposit at VersaBank USA.

The program will simulate thousands of transactions of small value, first internally and then with select external partners. Tokens will be managed through the bank’s digital vault and e-wallet platforms and issued on the Ethereum (ETH), Algorand (ALGO) and Stellar (XLM) blockchains.

While stablecoins, crypto tokens with prices tied to fiat currenci

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