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Real Bank Deposit Tokens (RBDTs) & Stablecoin Custody Services January 2026 NASDAQ: VBNK | TSX: VBNK Proprietary Technology for the Digital Asset Revolution
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Advisory The Bank occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, annual reports and other disclosure documents and communications. By their very nature, forward- looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. A number of 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 economy in general and the strength of the local economies within Canada in which the Bank conducts operations; the effects of changes in monetary and fiscal policy, including changes in interest rate policies of the Bank of Canada; global commodity prices; the effects of competition in the markets in which the Bank operates; inflation; capital market fluctuations; the timely development and introduction of new products in receptive markets; the impact of changes in the laws and regulations regulating financial services; changes in tax laws; technological changes; unexpected judicial or regulatory proceedings; unexpected changes in consumer spending and savings habits; the impact of the COVID-19 pandemic and the Bank’s anticipation of and success in managing the risks implicated by the foregoing. When relying on forward-looking statements to make decisions, investors and others should carefully consider these factors and other uncertainties or potential events. For a detailed discussion of certain key factors that may affect our future results, please see our MD&A for the quarter ended October 31, 2025. The Bank makes no undertaking to update any forward- looking statement that is made from time to time by the Bank. 2
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>30 Year Track Record of Technological Innovation Part of Our DNA • World’s FIRST digital financial institution (1993) • FIRST electronic deposit broker network (1993) • World’s FIRST “smart router”: Web Weaver (1995) • Received FIRST National Bank License in Canada in 18 years (2002) • FIRST integrated digital deposit solution for TIBs • Developed world’s FIRST digital receivables purchase solution • 30+ year track record NO MATERIAL LOAN LOSSES • Integral to INITIAL DEVELOPMENT of Tailscale mesh VPN (current PE valuation of >$2B) • Developed world’s FIRST digital vault, VersaVault® • FOUNDED DRT Cyber in 2019 • ONE of a (very) small number of foreign banks to be approved for a U.S. license in recent history • Launched FIRST Digital Receivable Purchase Solution in the U.S. • FIRST U.S. Financing Provider uses VersaBank RPP • FIRST blockchain-enabled deposit token by a nationally licensed bank in both the U.S. and Canada 3
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A North American Leader in Cybersecurity Solutions • Operating leverage of a technology company with the intrinsic value of a bank • Highly risk-mitigated model: Very sticky deposits/No material loan losses • Track record of strong earnings growth with strong future growth prospects based on US entry and new product offerings • Planned divestiture of Cybersecurity Services subsidiary represents significant unrealized value Poised for outsized long-term growth through ramp up of proven Receivables Purchase Program (RPP) in US market and market-ready deposit token technology Fully Digital North American Bank Highly Efficient: Branchless, Partner (B2B) model Innovative, Value-Added Deposit & Financing Solutions for Underserved Markets 4
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7.0% 12.0% 11.5% 7.9% 55% 43% 44% 55% $0 $10 $20 $30 $40 $50 $60 $0 $2 $4 $6 $8 $10 $12 $14 Capitalizing on the Significant Operating Leverage in Our Core Digital Banking Operations Next Milestones: F2025 Actual Total Credit Assets C$5.1B US$3.6B >C$6B >US$4.3B >C$7.5B >US$5.4B >C$10B >US$7.2B Efficiency Ratio 55% <40% <35% <25% ROCE 8% 18%+ 20%+ 35%+ 5 C$3.27 B US$1.95B C$4.20 B US$2.39B C$4.84 B US$3.03B C$5.81 B US$3.48B C$35M US$28M C$50 M US$38M C$53 M US$37M C$69 M US$49M C$23 M US$18M C$42 M US$18M C$45 M US$31M C$37 M US$26M $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2022 2023 2024 2025 Total Assets Non-Interest Expense Net Income ROCE $ CAD (millions) Digital Banking Efficiency Ratio Assumes Net Interest Margin on Credit Assets of 2.65% Assumes consistent common equity 1 1. Excluding One-Time Impacts Related to closing of the acquisition of SBH 2. Excluding costs associated with the proposed realignment to corporate structure and adjustments 2 Adjusted
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Early Leadership in the Digital Asset Revolution: Multiple Commercial Opportunities 6
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Digital assets/currencies, stablecoins increasingly in demand • Stablecoins account for ~3% of global cross-border payments (~US$1.5 T) • Annual stablecoin transfer volume reached US$27.6 T in 2024, surpassing combined volumes of Visa and Mastercard The Digital Asset Revolution is Transforming the Financial Services Industry Deposits: Banks increasingly experiencing “deposit drain” Payments: Global payments landscape being reshaped Increasingly favorable regulatory environment for secure and stable cryptocurrency activities Major banks, bank technology providers, payment providers and major retailers have expressed need for a digital asset/stablecoin strategy Stablecoins have become the digital currency of choice • Stablecoins represent 2/3 of cryptocurrency transactions in recent months 7 Younger generations increasingly prefer digital interactions over traditional banking methods / Declining use, interest in physical branches and traditional banking services • Less than 50% of Gen Z have a traditional bank account • Younger generations moving inheritances out of traditional banks • Over 50% of Gen Z rely primarily on non-traditional financial service providers • 38% of Gen Z would consider switching from banks that lack innovation • Nearly 94% of cryptocurrency buyers are in the age range of 18-40
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Deposit Tokens and Stablecoins: The Future of the Financial Ecosystem Blockchain enabled: Provide significantly greater speed, significantly lower cost, greater security and programmability Deposit Tokens (or Tokenized Deposits) Stablecoins Issued by Non-Banks Issued by Regulated Banks • Digital representations of traditional bank deposits that operate on blockchain-based infrastructure • Supported by same liquidity/regulatory frameworks as typical bank deposits • Ability to pay interest1 • Eligible for deposit insurance1 • Designed for institutional applications, including cross-border and B2B payments, digital asset settlement, and on-chain liquidity management. • Adhere to more rigorous compliance standards: better suited for enterprise-grade applications where KYC and AML compliance standards must be met • A cryptocurrency whose value is designed to be stable, typically by being pegged to a fiat currency like the U.S. dollar • Regulation by GENIUS Act in US, similar expected in Canada • Not permitted to pay interest • Not eligible for deposit insurance • Mainly used in lower-value retail contexts, incl. crypto trading, remittances, merchant payments w/ lighter compliance requirements 1. In compliance with FDIC and CDIC policies Remain on Bank Balance Sheet Must be Invested in Liquid Assets (e.g. T-Bills) 8
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The Digital Asset Revolution is Happening Now… …And Moving Fast Bank-Led Initiatives are taking the Offensive in developing Digital Assets 9 Major Bank-Led Digital Asset Initiatives • Developing tokenized deposit / digital cash infrastructure for on-chain settlement • Focused on wholesale use cases: collateral mobility, margin, and cash management • Building tokenized cash & asset servicing capabilities for institutional blockchain settlement • Positioning deposit tokens as an extension of custody, fund administration, and capital markets workflows • Developing institutional-grade stablecoin, JPM Coin • Piloting JPMD, a deposit token for live institutional payments • Launched Citi Token Services, blockchain-based platform for institutional clients • Joined European banking coalition developing a euro-based stablecoin • G7 stablecoin initiative: consortium of 10 major banks exploring creation of a shared digital currency platform • Primary objective is to create a regulated, interoperable, bank-grade alternative to privately- issued stablecoins • VersaBank Real Bank Deposit Tokens (RBDTs ) • VersaBank Stablecoin Custody Services Increasingly favorable regulatory environment for secure and stable cryptocurrency activities Source: KBW Research, Company websites, Reuters, VersaBank is Leading the Charge on Two Fronts:
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• Developed by DRT Cyber, based on VersaBank’sinternally developed security technology security-centric digital asset storage solution • Designed by Gurpreet Sahota, previously head of cybersecurity at Blackberry • Utilizes military-grade hardware within a dedicated, private data center specifically designed for highly secure and sensitive operations • Logically air-gapped from both the public internet and public blockchains and not hosted on public cloud infrastructure • Specifically developed for security conscious enterprises, financial institutions and agencies to protect their digital assets • SOC2 Type 1 Audit Compliant 10 Proprietary VersaVault® Digital Asset Technology 2018: Launched world’s first digital bank vault for securing blockchain- based assets and highly sensitive digital documents and data
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Operational • Low-cost / No-cost deposits for Bank’s own operations Significantly Enhanced Depositor Loyalty/Stickiness of Deposits • Reduced funding costs, lower/no-cost deposits as customers prioritize holding digital currency • Deposit Tokens circulate digitally, reducing redemption frequency and enhancing deposit stability Low-Cost Solution that is Readily Available Seamlessly Integrates with Existing Technology Including that of Core Service Providers Multiple Opportunities to Realize Value Compelling Proposition for Banks/Payments Providers VersaBank’s Real Bank Deposit Tokens (RBDTs ) USDVB CADVB 1. Subject to regulatory obligations as may apply Integrated US and Canadian demonstration pilots underway: Commercialization as soon as possible following completion1 11 Market Ready Solution: Near-Term Commercialization Sale/Licensing of Technology to: • Major banking technology provider • Major US banks/Community banks • Payment/credit card providers • Major online/physical retailers
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RBDT Near-Term Use Case • Deposit tokens could improve efficiency and reduce the cost of global money transfers. Real- time settlement across different time zones is a key advantage, potentially cutting costs significantly and reducing settlement times from days to minutes • Real-time, 24/7 settlement for large-value B2B within a regulated banking framework. Reducing settlement times from days to seconds and lower operational and liquidity costs, with the strongest impact in high-friction and emerging-market corridors • Annual trade between the US and Canada is over US$1.3T Domestic Business-to-Business payments Cross-Border Payments VersaBank is the first, and to date, only bank with a deposit token in both US and Canadian dollars Conditional Payments Securities Settlement VersaBank’s Real Bank Deposit Tokens (RBDTs ) (cont’d) Other RBDT Use Cases
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VersaBank is Ideally Positioned to Act as Custodian for Third-Party Stablecoins • Banks have historically been the custodians of depositors' money • VersaBank is a nationally-licensed bank in both the U.S. and Canada • Extensive experience and expertise in digital asset custody • VersaVault’s® unique approach to digital asset technology provides unmatched security VersaBank’s Stablecoin Custody Services Initiated Collaborations with Third-Party Stablecoin Issuers Value of Stablecoins in Circulation Projected to Grow to as High as $4 T by 2030 13 Source: Citi Institute
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Why VersaBank? Why Now? At inflection point for operating leverage, earnings growth and ROCE generation US Receivables Purchase Program (RPP) (proven in Canada) ramping up in an underserved multi-trillion $ US market Highly risk-mitigated model based on structuring of both deposits and credit assets Current valuation around book value & well below US peers Planned divestiture of profitable cybersecurity services will generate significant incremental value Renewed opportunity for the Bank’s transformational Real Bank Deposit Tokens (formerly Digital Deposit Receipts) Proposed corporate realignment expected to realize additional shareholder value, further mitigate risk and reduce costs 14
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Banking on the Future! 15