VERSABANK UNVEILS BRANDING FOR PROPREITARY DIGITAL DEPOSIT RECEIPTS: VERSABANK REAL BANK DEPOSIT TOKENS™ REFLECTS CRITICAL ADVANTAGE OF ISSUANCE BY A FEDERALLY LICENSED BANK

Rhea-AI Summary

VersaBank (TSX: VBNK / NASDAQ: VBNK) unveiled branding for its proprietary Digital Deposit Receipts as VersaBank Real Bank Deposit Tokens™ (RBDTs™) on October 27, 2025. The brand emphasizes that RBDTs™ are issued by a federally licensed bank in both the United States and Canada, which the company says enables legally permitted interest payments and deposit insurance—features the announcement distinguishes from non‑bank stablecoins. The release states RBDTs™ represent actual cash deposits held by the bank and recorded on the blockchain. VersaBank says it is preparing for the anticipated commercialization in the coming months and highlights its position as a dual‑chartered national bank running cross‑border pilot programs in the US and Canada.

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LONDON, ON, Oct. 27, 2025 /PRNewswire/ - VersaBank (TSX: VBNK) (NASDAQ: VBNK), a North American leader in business-to-business digital banking, as well as technology solutions for cybersecurity, today unveiled branding for its proprietary Digital Deposit Receipts (DDRs):  VersaBank Real Bank Deposit Tokens™ (RBDTs™). The brand reflects the critical advantage of the Bank's RBDTs™ compared to stablecoins of being issued by a federally licensed bank (in both the United States and Canada), enabling legally permitted interest payments and deposit insurance¹, which non-bank issued stablecoins are not allowed to provide. The brand also reinforces the critical functional foundation that RBDTs™ are actual cash deposits with the Bank that are reflected on the blockchain.

"The branding of VersaBank Real Bank Deposit Tokens™ is an important step as we prepare for the anticipated commercialization of our proprietary in the coming months²," said David Taylor, Founder and President, VersaBank. "VersaBank Real Bank Deposit Tokens™ combine the safety and soundness of traditional banking with the efficiency, cost savings, security, and programmability of blockchain technology. As the only dual-chartered national bank currently integrating and running cross-border pilot programs, we are proud to continue our track record of innovation and to demonstrate the many benefits of our RBDTs™ across both the US and Canada."

About VersaBank's Real Bank Deposit Tokens

VersaBank Real Bank Deposit Tokens™ (RBDTs™) (previously known as Digital Deposit Receipts, or "DDRs") are VersaBank's proprietary tokenized deposits, functioning as digital representations of traditional bank deposits on a blockchain, offering enhanced efficiency, programmability, and security in financial transactions.  As one-for-one representations of an actual fiat currency on deposit with the Bank (or any bank using VersaBank RDTBs™ that are issued by a federally chartered bank and are permitted to pay interest and federally insured, deposit tokens offer significant advantages over traditional stablecoins.  VersaBank Real Bank Deposit Tokens™ were developed in conjunction with law enforcement as a trusted alternative to stablecoins for mainstream financial applications, including efficient payments, addressing the rapidly growing propensity of consumers and businesses to hold assets in e-wallets and engage in financial transactions digitally.

VersaVault® is the world's first digital vault for security conscious organizations looking to secure their highly sensitive and confidential documents, data, code, blockchain-based assets and more, addressing the need for regulated custody of digital assets with secure platforms. VersaVault's military-grade security technology is SOC2 Type 1 Audit compliant and securely manages highly sensitive cryptographic material essential for issuing and redeeming, and ongoing management of RBDTs. It provides robust protection for sensitive data used throughout these critical token lifecycle events, ensuring end-to-end security and traceability.

About VersaBank

VersaBank is a North American bank with a difference. Federally chartered in both Canada and the US, VersaBank has a branchless, digital, business-to-business model based on its proprietary state-of-the-art technology that enables it to profitably address underserved segments of the banking industry in a significantly risk mitigated manner. Because VersaBank obtains substantially all of its deposits and undertakes the majority of its funding electronically through financial intermediary partners, it benefits from significant operating leverage that drives efficiency and return on common equity. In August 2024, VersaBank broadly launched its unique Receivable Purchase Program funding solution for point-of-sale finance companies, which has been highly successful in Canada for nearly 15 years, to the underserved multi-trillion-dollar US market.  VersaBank also owns Minneapolis-based DRT Cyber Inc., a North America leader in the provision of cyber security services to address the rapidly growing volume of cyber threats challenging financial institutions, multi-national corporations and government entities.  Through its wholly owned subsidiary, Digital Meteor Inc. ("Digital Meteor"), VersaBank owns proprietary intellectual property and technology to enable the next generation of digital assets for the banking and financial community, including the Bank's revolutionary tokenized deposits.

VersaBank's Common Shares trade on the Toronto Stock Exchange and NASDAQ under the symbol VBNK.

FORWARD-LOOKING STATEMENTS

VersaBank's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings and with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. The statements in this press release that relate to the future are forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, many of which are out of our control. Risks exist that predictions, forecasts, projections, and other forward-looking statements will not be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements as several important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian and U.S. economy in general and the strength of the local economies within Canada and U.S. in which we conduct operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada and the U.S. Federal Reserve; changing global commodity prices; the effects of competition in the markets in which we operate; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations pertaining to financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of wars or conflicts including the crisis in Ukraine and the impact of the crisis on global supply chains; the impact of new variants of COVID-19 and the Bank's anticipation of and success in managing the risks implicated by the foregoing. For a detailed discussion of certain key factors that may affect our future results, please see our annual MD&A for the year ended October 31, 2024.

The foregoing list of important factors is not exhaustive. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The forward-looking information contained in this document and the related management's discussion and analysis is presented to assist our shareholders and others in understanding our financial position and may not be appropriate for any other purposes. Except as required by securities law, we do not undertake to update any forward-looking statement that is contained in this document and the related management's discussion and analysis or made from time to time by the Bank or on its behalf.

Visit our website at:  www.versabank.com|
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1	In compliance with FDIC and CDIC policies.
2	Subject to regulatory obligations as may apply.

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SOURCE VersaBank

FAQ

What are VersaBank Real Bank Deposit Tokens (RBDTs™) announced by VBNK on October 27, 2025?

RBDTs™ are VersaBank's branded Digital Deposit Receipts that the company says are actual cash deposits held by the bank and recorded on the blockchain.

How do VBNK RBDTs™ differ from stablecoins according to the October 27, 2025 announcement?

VersaBank states RBDTs™ differ because they are issued by a federally licensed bank and can enable interest payments and deposit insurance, which non‑bank stablecoins are not allowed to provide.

When will VersaBank commercialize RBDTs™ (VBNK)?

The company said it is preparing for anticipated commercialization in the coming months following the October 27, 2025 branding announcement.

Do VBNK RBDTs™ operate cross‑border between the US and Canada?

VersaBank described RBDTs™ as supported by its dual‑chartered operations and said it is running cross‑border pilot programs in the US and Canada.

Will VBNK RBDTs™ pay interest or be eligible for deposit insurance?

VersaBank announced RBDTs™ can enable legally permitted interest payments and deposit insurance because they are issued by a federally licensed bank in the US and Canada.