Canadian Bank to Offer Secure Vault for Cryptocurrencies

VersaBank Inc., Canada’s smallest bank in terms of assets, is responding to the need for digital asset security by creating a digital vault that will be available by June.

The bank recently hired Gurpreet Sahota, a cybersecurity expert, from Blackberry Ltd., a company long seen as an encryption and security leader. Sahota will oversee the design of the “VersaVault” that will store digital assets on computer servers, according to Bloomberg.

David Taylor, VersaBank’s CEO, said most peoples’ assets are contained in some type of digital format, be it a contract, deed or cryptocurrency.

Vault To Be Secure

VersaBank will not be able to access or know what contents are in the vault. Taylor said having no way to open the vault ensures its privacy.

VersaBank is responding to the need for digital security, an area which is calling for attention given the recent heist of more than $500 million from Coincheck Inc., a Japanese cryptocurrency exchange. Hackers usually gain access to cryptocurrency exchanges through their Internet connected wallets.

Taylor said large funds have indicated an interest in storing their assets in VersaVault since it was announced last month. The pricing for the service has not been determined, but Taylor said the service will be expensive.

Several U.S. banks have said they are halting cryptocurrency purchases on credit cards, citing security concerns.

Digital Asset Security Efforts

VersaBank is not the first company to respond to the need for digital asset security.

Xapo Inc. has offered secure bitcoin storage for around four years…

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