Crypto Safety Deposit Boxes to Be Offered by Small Canadian Bank, VersaBank

VersaBank, the smallest bank in Canada by assets, is now offering customers a safe vault solution for storing cryptocurrencies.

For the past few years, thousands upon thousands of cryptocurrency holders have learned a harsh lesson about cybersecurity as hackers have stolen their investments.

To counter this, a small lender in Canada wants to venture into territory other banks refuse to tread.

It is making a “vault” for cryptocurrencies much like how safety deposit boxes work.

“We’re using what banks are all about -- safety and security -- only what we’re doing now is saying that physical box in the basement is getting obsolete. Most people’s really valuable assets are contained in some sort of digital format, whether it be a deed or a contract or a cryptocurrency,” said David Taylor, CEO of VersaBank, the smallest bank in Canada.

In essence, their vaults function under a zero-knowledge principle, meaning that the bank will have no access to the assets it stores.

Investors concerned about privacy and the threat of hackers might find this option attractive since it allows them to rely on a third-party that specializes in security.

To top everything off, they hired Gurpreet Sahota — a cybersecurity expert from BlackBerry, the smartphone manufacturer known for its strong encryption and security features — to assist in designing what they call the VersaVault.

This isn’t the first time a company came up with a solution for people to store their cryptocurrencies safely. Xapo, Inc. has been doing this for years.

However, VersaBank is the first banking institution to offer such a solution to its customers. Others in Asia — such as Shinhan Bank in South Korea — will also be taking this path soon.

After the Coincheck incident over a week ago that cost its customers over half a billion dollars, the supply of safe storage solutions couldn’t have come sooner.

We’ll likely see an uptick in demand for more secure cryptocurrency solutions in the near future as peoples’ concerns about hacking attempts may grow.