VERSABANK ANNOUNCES STABLECORP'S QCAD AS FIRST STABLECOIN CUSTOMER

Executive Summary

• VersaBank signed a definitive agreement to become the custodian for Stablecorp’s QCAD stablecoin, Canada’s first regulatory‑compliant Canadian‑dollar stablecoin.
• The partnership creates a new digital‑asset custody revenue stream for VersaBank and positions the bank as a key infrastructure provider in the emerging stablecoin market.
• VersaBank will earn fees based on assets under custody and a spread on QCAD deposits, contributing to net interest income without affecting credit‑related net interest margin.

Key Details

• Parties Involved: VersaBank (TSX: VBNK / NASDAQ: VBNK) and Stablecorp Digital Currencies Inc., the issuer of the QCAD Digital Trust.
• Service Provided: Custodial storage of QCAD stablecoin using VersaBank’s proprietary VersaVault® technology, which is SOC 2 Type I audited and air‑gapped from public networks.
• Revenue Model:
• Fee based on the value of QCAD assets held in custody.
• Spread earned on QCAD deposits; net interest income from these activities will be reported within cash and securities net interest income, not affecting credit asset margins.
• Strategic Rationale:
• Expands VersaBank’s digital‑asset offering and creates a “highly efficient revenue stream with significant long‑term growth potential.”
• Leverages the bank’s federally regulated status in both Canada and the United States to attract institutional stablecoin issuers.
• Quotes:
• David Taylor, Founder & President, VersaBank – highlighted VersaVault®’s unique security approach and the opportunity for “significant balances of low‑cost deposits via new channels.”
• Kesem Frank, CEO, Stablecorp – described the custodial relationship as a “significant milestone” that sets a new standard for Canadian digital‑asset infrastructure.
• Regulatory Context: QCAD is Canada’s first regulatory‑compliant stablecoin; custody by a federally regulated Schedule I bank underscores compliance and security.

Notable Quotes

“Stablecorp is on the leading edge of the mainstream adoption of digital currency in Canada and we are proud they have chosen VersaBank and our proprietary VersaVault® technology for their QCAD stablecoin custody requirements.” – David Taylor, Founder & President, VersaBank

“Securing this custodial relationship with a federally regulated, Schedule I bank is a significant milestone for our industry…” – Kesem Frank, CEO, Stablecorp