Corporate Realignment Supports Planned Divestiture of Cyber Security Businesses
VersaBank, a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, announced the internal transfer of certain assets, including intellectual property, and other resources, including personnel, related to its revolutionary Digital Deposit Receipt technology (“DDR”) to an existing, wholly owned subsidiary of DRT Cyber Inc. The subsidiary, which will exclusively hold DDR assets and resources, has been renamed Digital Meteor, Inc., and is expected to enable VersaBank to generate additional shareholder value by capitalizing on its proven, proprietary digital asset technology and intellectual property, alongside its strong anticipated growth from ramping up its Receivable Purchase Program in the U.S. The Transfer also supports the Bank’s planned divestiture of its Cyber Security businesses. There are no material financial implications associated with the Transfer.
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“We continue to be encouraged by the favorable stance of President Donald Trump and the new administration with respect to digital assets and the role they can play in the future of banking and commerce, not only in the United States but around the world,” said David Taylor, President and Chief Executive Officer, VersaBank. “We are especially encouraged by President Trump’s executive order on January 23 to “promote United States leadership in digital assets and financial technology”, which includes establishing a working group to “advise on digital asset policy and work with Congress on digital asset legislation, as well as the SEC’s creation of a digital currency task force last week. VersaBank is proud to be at the forefront of this revolution as leaders in digital asset innovation. We are the first bank to our knowledge to have successfully completed a pilot program with our blockchain-based DDR, providing a secure representation of federally regulated bank deposits, on the Algorand, Ethereum and Stellar blockchains, and received SOC 2 Type I certification for the underlying VersaVault technology in 2022. Importantly, our DDRs can be seamlessly converted to and from other digital currencies such as Bitcoin.”
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“With renewed optimism about the future of digital assets in the United States and our further expansion into the U.S. financial services market, we are observing increasing third party interest in our proprietary DDR technology. This technology combines the safety of traditional banking with the efficiency, cost savings, security, and flexibility of blockchain technology. Additionally, it addresses the need for properly regulated custody of digital assets with secure platforms such as VersaVault. Licensed banks are the trusted, regulated safekeepers of personal and business cash assets and other valuables and are naturally positioned to do the same for digital currencies. We believe our trusted and secure solutions, along with the potential for DDRs to be an ultra-low-cost source of deposit funding, will play a meaningful role in enabling U.S. banks and other entities to confidently engage in the rapidly developing field of digital commerce.”
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Source – PR Newswire
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