Alogrand ALGO Chosen To Revolutionize The Financial System At A Foundational Level...

Added: 2026-05-26

[00:00:00]Did you know that Algrand was chosen by the world's first fully digital bank to complete a pilot that involved RBTDs, which are bank tokenized deposits, which was also a world first as an SEC filing reveals. Welcome back ladies and gentlemen, Robert here. Today we're going to be talking about Algarand and really a good place to start is with this post from their main accounts.

[00:00:29]Versa Bank recently completed the world's first pilot of blockchainbased deposit receipts and chose Algarand as one of their trusted networks. When banks need security, scalability, and regulatory compliance, they know where to look. Now, there was another two DTS that were um chosen alongside Algarand.

[00:00:49]Stella Lumens, who you guys know we talk about, and of course Ethereum, which seems to have fallen out of favor with CT at the moment, but we're going to be focusing on Algarand in this video. So, this was huge. This took place at the back end of last year and really hasn't been explored or discovered. This is an announcement from them earlier in the year where they were actually looking at Algrand to facilitate this. Of course, it took place at the back end of last year. Uh there's a SEC filing this year that sort of reveals it all. It says Versa Bank announces Versa Bank USA launch of tokenized deposit pilot program in the United States. So this is affecting the largest market in the world as traditional stable coins gain traction as a tool for various financial activities within the cryptocurrency ecosystem. Versa Bank, a North American leader in business-to- business digital banking as well as a technology solution for cyber security, today announced that it is wholly owned subsidiary, Versa Bank USA, has launched an internal pilot program in the United States for its USD VBS, the United States dollar version of its propri proprietary digital deposits receipts. So DDRs lots of terminology here developed exclusively by Versa Bank using its proprietary technology. DDRS are bankisssued tokenized deposits which are highly encrypted onetoone digital representations of actual cash deposits that provide superior security, scalability and regulatory compliance compared to stable coins. Remember what they said on the um Algrand post over here. It goes on to say they combine the safety and soundness of traditional banking with the efficiency, cost-saving, security and programmability of blockchain technology.

[00:02:57]If we come down to paragraph 4, it says, "Versa Bank USADVB pilot program will follow a phase testing program involving thousands of transactions. The minimus value with controlled internal testing and expanding to include limited external development, deployment with designated deposit partners and their clients.

[00:03:23]USDVs will be issued at a rate of one USDV for each one US dollar on deposit with Versa Bank USA.

[00:03:36]Insurance and redemption and basic management of USDVs uh will occur through VersaBrank's proprietary Versault digital value platform on the first DT mentioned Algrand Ethereum and Stella blockchain and access to any control of USDVs will be managed through its Versa View e-wallet platform. Versa Bank USA expects the USDV pilot program to be completed by the end of the calendar year 2025. We're going to look at that in just a second with commercial launch to occur as soon as possible thereafter. So we'll look at the kind of full report. We'll look at an SEC filing that kind of um demonstrates this big deal. So ultimately what's going to drive DTS um or or or or the underlying tokens attached to these distributed ledger ecosystems what's going to drive that value is usage of the networks and thus the token as the kind of digital commodity of them. It's great to see innovative kind of leaders such as Versa Bank choose Algrand and complete sort of US first pilots as it relates to using distributed ledger technology in the financial system which we'll look at in just a second. So this is Versa Bank's website. Welcome to Versa Bank's corporate website to highlight because these guys really are a pioneer. Versa Bank was the world's first fully digital financial institution and today employs a cloud-blaced branchless business-to- business model based on its uh proprietary stateof-the-art technology that enables its profitable address underserved segment of the banking industry um the bank model so on and so forth. So, we're going to look at what their kind of leader has to say on this towards the end and how they believe DTS are going to transform the financial system.

[00:05:38]Before we do, I want to refer you guys to a filing from the SEC management discussion and analysis. You can see this is on the sec.gov website. What we're interested in is page six. It says, and this is relating specifically to Algrand, and we'll look at their report in just a second. It says management believes that licensed banks as the trusted regulatory safekeeper of personal and business cash assets and other valuables are naturally positioned to do the same for tokenized deposits.

[00:06:13]Versabank has established itself as a leader in digital asset innovation.

[00:06:18]management believes its trusted and secure solutions along with the potential for RDT uh DS RBTS which is your tokenized deposits to be an ultra- lowcost secure source of deposit funding will play a meaningful role in enabling banks and other entities to confidently engage in the rapidly development or developing field of digital commerce.

[00:06:48]management is encouraged by the favorable stance of the current US administration with respect to digital assets and the role they can play in the future of banking and commerce in the United States as well as around the world. To its knowledge, Versa Bank is the first bank to successfully complete a pilot program with a blockchain RBD RBTDS in which Versa Banks's RBTDs provided a secure representation of federally regulated bank deposits on the Algarand Ethereum and Stellar blockchain as digital assets. Um, with a continuous known value, VersaBank's RBTDS provides a trusted alternative for mainstream financial applications and can be seamlessly converted to and from other digital currencies such as Bitcoin.

[00:07:47]That's from our filing to the SEC.

[00:07:48]They're not going to lie on that. This is huge. The fact that Algram was chosen, I think, is telling. Look, you want to look for partnerships and pilots like this as a suggestion of what the future may look like and what DTS may play a role. There's going to be multiple. It's not going to be one chain to rule them all.

[00:08:05]What Versa Bank are is a very clearly innovative bank, the first people to go fully digital and they're doing within the United States um sort of world first pilots. They're doing that on our grand looking to innovate the industry as a whole. We'll listen to what their CEO has to say in just a second. So this is a report we had looked at the initial announcement of what they were trying to do. This is a kind of follow-up report.

[00:08:27]Obviously this came and then post that you had the SEC filing versus bank US entry provides a transformational opportunity.

[00:08:39]The bank occasionally makes forward-looking statements about its objectives. It's talking about the kind of opportunity here as it's unfolding.

[00:08:47]Obviously they're a fully digital North American bank, highly efficient and they're leading solutions under and sort of revolutionizing markets. He talks about kind of deposits more broadly. I think we all have a varied understanding of that. Um you know a multi- trillion dollar growing market so on and so forth. Um if we come down to page 16 you can see developed by a bank for banks all functionality efficiency audability safety and security of stable coins and other encrypted digital assets without the associated volatility and risk with um conventional bank deposits legal ability to pay interest. So this is kind of getting round a lot of what was put in recently. It talks about the basis um and it talks about a high level of security based on uh proprietary Versault and then it talks about proven technologies successfully completed pilot on Algarand Ethereum and Stella blockchain first bank known to achieve this integrates with existing banking technology. What I want to do now for you guys is play you um a clip of their founder David Taylor actually talking about stable coins and tokenized deposits and and and the kind of effect that they're going to have. Remember based on all this Algrand is going to be one of those key enablers. A lot of people haven't seen this world's first digital bank and a world first pilot involving these tokenized deposits in the United States conducted on Algrand.

[00:10:17]They're looking to use and utilize it.

[00:10:19]Huge green tick in my opinion. Let's get into these clips.

[00:10:22]>> We've been told by a major banking service provider that approximately 70% of the wealth that is transferred generationally goes to non-bank crypto, stable coins, etc. This is an existential crisis for community banks. They must embrace new technology or suffer the consequences.

[00:10:42]On the payment side, the market is continuing to pursue faster, less expensive, and more secure transactions.

[00:10:50]Digital assets, specifically tokenized deposits and stable coins, address both.

[00:10:57]Let me start with a quick comparison of tokenized deposits and stable coins.

[00:11:01]Both are representations of a unit of currency on the the blockchains, meaning both provide significant faster transactions, significantly lower cost, significantly greater security and programmability.

[00:11:16]To date, stable coins have been getting all the headlines predominantly because their rapid growth, which has been largely due to their ability to exist outside the regulation until recently.

[00:11:27]But I'm going to start with the deposit tokens because they are where the biggest names in banking and finance are playing and where we have the biggest opportunity.

[00:11:37]one-on-one digital representation of actual deposits with a bank on blockchain supported by the same liquidity regulatory framework as typ typical bank deposits ability to pay interest which stable coins are not allowed to do as actual bank deposits. We believe they will be eligible for deposit insurance designed for institutional applications including crossber and B2B payments, digital asset settlement and onchain liquidity management. They adhere to the most rigorous compliance standards better suited for enterprisegrade applications where know your client and anti-moneyaundering compliance standards must be met and very importantly they reside on the bank's balance sheet meaning they are a source of lowcost even no cost deposits as music to my ears as a banker which means they provide lowcost nocost funding for financing and lending activities to further grow our business.

[00:12:34]Stable coins are similar but are issued by non-banks, cannot pay interest, are not eligible for deposit insurance, and must be invested in low-risk assets like T- belts with third parties, meaning they are not available for use by the issuer. We believe each will have a role to play in the digital asset ecosystem.

[00:12:58]The digital asset revolution is here.

[00:13:00]>> That's their founder. Um, we sped that up quite a bit. Then he talks about tokenized deposits um and kind of giving people mortgages and and where all the future of this is kind of going. Let's get into this and then we'll wrap the video up. Remember, Alrand's going to play a role in this. It already is. We don't believe any any legislation or even regulation is needed to uh launch the uh tokenized deposits either north or south of the border in that uh they are real bank that's hence the name real bank deposits. their real bank deposits and their their records are kept uh as all our deposits on our own ledger that the data is simply reflected onto the various blockchains to uh provide for speedy uh payment vehicle. Uh so our our view is that no no regulation or or or certainly no change in legislation is is needed to allow banks to simply uh show evidence of a deposit utilizing a new technology. It was very similar to back in the day when banks uh began using the internet uh rather than paper to provide evidence of the deposits. Don't recall any any new legislation required for that. It just made more convenient a convenient uh forum for uh for looking at what you had on deposit with with the bank. Now with respect to utilizing these deposits for a normal lending business and which uh community banks of course definitely are keenly interested in because this is their lifeblood and this is how they provide Mrs. Jones and Mr. Jones with a mortgage on their house. Um what we banks do is look at the stickiness of the deposit and we'll need some some experience. We'll have to have some data on this to determine how much uh we we comfortably feel we can lend back out in the longer term assets.

[00:14:40]So for the time being, for the early days, uh we banks will be um be doing some some uh math on statistics on the statisticiness. And once we've become comfortable and our regulators have become comfortable, then just like all deposits, uh they'll be used to fund uh folks looking to uh get a mortgage or finance a motorcycle or a car. All the things that banks uh banks do that sort of lifeblood of Community Bank, but the lifeblood of the of the economy on both sides of the border. That's what we banks are here for, to take risk averse people's uh deposits and place them judiciously, carefully into into assets that uh that pay interest and help help grow the economy.

[00:15:21]>> So, I'll leave you on that clip. Um it talks about where this is going. You know, the entire financial system is going to run on chain. There'll be multiple chains that play a role in that. It's quite encouraging to see Al Grand this far in regards to Versa Bank, what they're doing, conducting sort of firsts with a clear vision to advance this whole thing even further. Ladies and gents, that's it from me. I'm going to love and leave you all. Thanks everybody for watching. Let me know your thoughts in the comment section.