Canada’s VersaBank Enters Crypto Market with Vault Storage
The bank wants to target cryptocurrency exchanges and virtual asset funds with a new custodian system, called Digital Safety Deposit Box.
VersaBank, one of the smallest banks in Canada by assets, has rolled out a virtual currency vault storing system in a bid to expand its markets share with services to the crypto industry. Called Digital Safety Deposit Box, the custody targets digital asset trading platforms and crypto investment funds, the bank said on Thursday.
The financial institution announced the project in February, and after several months of testing, VersaBank decided to launch the service fully. Digital Safety Deposit Box uses multi-signature as an identification system.
“The beta testing, conducted with our initial target client base, focused on ensuring VersaVault’s design would meet the specific requirements of cryptocurrency exchanges and crypto funds,” the bank said in a statement.
The storage works as a vault service, meaning that the bank should break the virtual coins up into independent parts, which as separate fragments have no value, and then store them in vaults. The bank offers the Digital Safety Deposit Box through its subsidiary VersaVault. Gurpreet Sahota, a former cybersecurity expert at BlackBerry, leads the project.
“VersaVault does not have the ability to ‘drill’ into a client’s digital safety deposit box, nor does it have the ability to look inside, only the client has the capability to access their digital valuables and only they know of their contents inside,” the bank explained.
The custody market has become very competitive with several major crypto and traditional financial players entering it. Last month, UK-based multinational security firm G4S launched an offline vault cryptocurrency storing system in a bid to expand the company’s presence outside of its traditional source of revenue – cash transportation services.
Several other players have also announced storage systems, including BitGo, which recently gained custody approval in the US state of South Dakota, Goldman Sachs, with its plan for offering that type of service to virtual asset funds, and the Coinbase custody platform for institutional players.