The smallest bank in Canada by assets, VersaBank Inc., has decided to open its doors to the world of crypto. This bank plans to create a secure digital vault, in which owners of digital currency can store their coins. To achieve this objective, the bank has hired Gurpreet Sahota, a cyber-security expert. Sahota works for Blackberry Ltd., a company that has for many years been seen as a leader in encryption and security. According to a report in Bloomberg, Sahota will be in charge of the creation of VersaVault, which will be used to store digital assets on servers.
According to the CEO of VersaBank, most people store their assets in a digital format. He added that these coins could be stored as deeds, contracts, or even digital currencies. According to the available information, the bank itself will not have access to the contents of the vault. Thus, since the bank itself will not have a backdoor to the assets, it will help to keep things secure.
The Bank Is Responding to a Need
The bank is only responding to a need that has been there for quite a while. There have always been issues with digital security in the world of crypto. One of the latest demonstrations of this was when Coincheck was hacked, and over $500 million in digital assets were stolen. In this case, Coincheck, the Japanese exchange, was successfully hacked over an Internet connection.
According to the bank’s CEO, they expect to be serving mainly large investors. Substantial funds have already invested in crypto, and they have been looking for a secure way to store these assets. The bank has yet to announce the pricing model it will use. However, the CEO has said that the service would not come cheap.
Because of security issues, various US banks have said they will not allow their credit cards to be used for digital currency purchases. VersaBank will not be the first firm to attempt to find a solution for digital assets security. A good example is Xapo Inc., which has been offering Bitcoin storage services for about four years.
A Banking Pioneer at the Helm
The current CEO introduced a branchless bank in Canada in 1993. It was only four years later that ING Groep NV offered telephone banking called ING Direct. The bank operates via the branchless electronic model. It currently has a market valuation of about $126 million, and eighty employees. It has consistently outperformed some of the biggest banks in Canada. This year alone its shares have risen by 24 percent, which is in contrast to the 2.9 percent decline in the biggest banking index in the country.
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