VersaBank announced a definitive agreement with Stablecorp Digital Currencies Inc. to provide custodial services for QCAD, Canada’s first regulatory‑compliant Canadian‑dollar stablecoin. The partnership positions VersaBank as the first federally regulated bank to hold custody of a stablecoin that is fully backed 1:1 by Canadian dollars held in reserve at regulated institutions.
VersaBank’s Q4 2025 earnings report showed an earnings per share of $0.24, beating analyst expectations of $0.23 and surpassing the $0.15 EPS recorded for the same quarter a year earlier. The QCAD custody deal is expected to add fee income and a spread on deposits, which will feed into the bank’s net interest income and help sustain the upward trajectory of earnings demonstrated in the prior year’s results.
The new revenue stream will come from a combination of custody fees and the interest spread on the QCAD reserves. Management projects that the fee income will grow in line with the projected increase in QCAD issuance, while the spread will remain stable as the bank leverages its VersaVault technology, which is SOC 2 Type 1‑certified and operates in a dedicated, air‑gapped data center. This aligns with VersaBank’s broader strategy of expanding its digital‑asset services while maintaining regulatory compliance.
VersaBank’s CEO David Taylor said the partnership “demonstrates the bank’s leadership in secure digital‑asset custody and reinforces our commitment to providing regulated, technology‑driven solutions for the growing stablecoin market.” Stablecorp’s CEO Kesem Frank added that the custodial relationship “marks a significant milestone for the Canadian digital‑asset industry, giving QCAD users confidence in a federally regulated custodian.”
No immediate market reaction data was found for the announcement, but the deal is expected to strengthen VersaBank’s competitive position in the digital‑asset custody space and could attract low‑cost deposit balances in the future.
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