Canada-based VersaBank is moving towards the launch of a blockchain-based vault to securely store the digital assets. As part of the development process, the digital-only bank signed on Monday two memorandums of understanding – one with a cryptocurrency exchange and the other with a cryptocurrency-based fund.
The bank did not disclose the names of either of the cryptocurrency firms at this stage.
Addressing this update, David Taylor, VersaBank President and CEO, explained the strategic importance of the memorandums.
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He said: “This is an important step in our development of the VersaVault. There are two primary institutional holders of cryptocurrency assets, the exchanges and the funds. In connection with developing a product that meets with the seamless services that both exchanges and funds require, we have signed MOUs with one of each, which will provide us with the necessary feedback regarding what institutional digital asset holders require from our services, so that when we launch globally to the other exchanges, funds and numerous other digital asset holders, we will have a product that meets their specific needs, and one which provides for ease of use.”
Versabank first announced its digital storage service, called VersaValut, In January. As well as valuable crypto assets, it will be capable of holding digital assets like sensitive photographs and contracts.
The vault will work in a similar way to a safe deposit box, in that a given user will be the only one with access to the stored asset. The system will have multiple layers of protection from cyber-criminals. The increasing number of thefts from cryptocurrency exchanges will boost the demand for secure vaults such as this, VersaBank believes.
Mr. Taylor said in an interview: “Obviously, the value of those (crypto)currencies have been increasing dramatically, and it’s been attracting the attention of the modern-day bank robbers, modern-day thieves that have been finding their ways into these wallets.”