Canada-based VersaBank has launched a digital safety deposit box for cryptocurrency firms known as VersaVault. This is in response loss of digital assets through crypto hacking and other security breaches. “Bitcoin and other cryptocurrencies are quickly gaining popularity and holders have already experienced their valuable holdings vanish from the less secure ‘digital storage’ options,” the banked noted earlier this year.
VersaVault which will be operated as a subsidiary of the bank was launched on Thursday, Nov. 8 after completing a successful beta testing according to a press release from the bank.
The statement read:
“VersaBank is pleased to announce that its subsidiary, VersaVault, has successfully completed beta testing for its previously announced digital safety deposit box and is initiating commercialization of its services.”
In its statement, VersaBank CEO David Taylor described the digital lockbox as a pioneering venture which will now be available for cryptocurrency exchanges and crypto investment funds to store their digital assets.
“While many are considering ideas and plans for a digital safety deposit box, we have designed and built it, and are now commercializing a first of its kind service that provides our clients with the most sophisticated security and authentication technology available globally, in which our clients enjoy absolute privacy.”
Not the regular Crypto Custody Service
VersaVault, which could be seen as a form crypto custody service differs in that it follows the guiding standards of bank safety deposit boxes. This means, the bank cannot access the deposit box neither can it know what is stored inside the safe, giving the user ultimate privacy. The bank explained:
“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.”
VersaBank operates a branchless banking model which means its conducts all its operations via electronic means and has the smallest asset base among banks in Canada.
The bank decided in January to develop a digital vault for crypto assets. It proceeded to employ the services of cybersecurity expert Gurpreet Sahota who previously worked for Blackberry to lead the project.
By March it received on two prospective users for its beta testing. Taylor noted that the beta testing results were successful hence the decision to commercialize the project. According to the bank’s Director of Investor Relations Wade MacBain, the bank has already gotten over 200 inquiries about VersaVault.