VersaBank, a Canadian bank, has added foreign exchange functionality to its tokenized deposit platform.

PANews reported on March 18th, citing Cointelegraph, that VersaBank, a Canadian chartered bank, has added foreign exchange functionality to its tokenized deposit platform, allowing users to convert USD to CAD in real-time on a blockchain-based system. This feature utilizes Real Bank Tokenized Deposits (RBTDs) for 24/7 real-time currency exchange, aiming to improve cross-border transactions by reducing reliance on traditional foreign exchange tracks. RBTDs are tokenized versions of bank deposits that can be transferred on blockchain infrastructure and are backed 1:1 by customer deposits as liabilities of the issuing bank. Unlike stablecoins issued by traditional non-bank entities, which operate within the traditional banking system, RBTDs are a tokenized version of bank deposits that can be transferred on blockchain infrastructure. This update is a step in the platform's commercialization process, as VersaBank has been piloting its tokenized deposit system since last year.