Canadian Exchange VirgoCX Taps Ledger Vault for Custody, Insurance Support
Canada-based crypto exchange VirgoCX has turned to enterprise infrastructure technology platform Ledger Vault to provide custody solutions for retail and institutional clients.
Canadian crypto exchange VirgoCX has tapped enterprise infrastructure technology platform Ledger Vault to provide custody solutions for retail and institutional clients.
Ledger Vault will provide the security infrastructure to safeguard VirgoCX's digital assets for retail and institutional clients while enabling the "the overflow of funds in and out, allowing users to access funds promptly," the exchange said in a Monday announcement.
Using Ledger Vault's multi-authorization digital asset wallet solution, Virgo, which is registered as a Money Service Business with Canada's Financial Transactions and Reports Analysis Centre (FINTRAC), hopes to increase security without jeopardizing liquidity.
The partnership comes amid heightened awareness around the industry's vulnerability to exchange hacks and theft, especially for startups as seen with Altsbit, which was forced to close shop months after it opened after being hit by a hack that it couldn't afford to cover.
"Ledger Vault's solution allows us to maintain full visibility and audibility over users' activity, while providing an unparalleled level of security for the assets in motion," said Adam Cai, CEO of VirgoCX, in a statement.
In addition, cryptocurrency assets are secured with Ledger Vault are covered by its $150 million pooled crime insurance, meaning clients are covered in the event a hacker does succeed in stealing exchange funds.
"The integration of Ledger Vault will help VirgoCX adjust its business operations to address the increased concern for the safekeeping of cryptocurrency assets from within the industry," Ledger and Virgo noted in a press release.
New guidance by the Canadian Securities Administrators (CSA), released this year, subjects crypto exchanges seeking to provide custody for clients to securities law.
The CSA previously said transactions without immediate delivery constitute derivatives sales, even if the custodied asset is generally recognized as a commodity such as bitcoin.
With the partnership, Ledger has been able to expand its operations into Canada, under the new CSA guidance, coming hot on the heels of its recent expansion into Asia at the beginning of the year. Ledger Vault now claims to have more than 50 institutional clients and partners including Legacy Trust, Uphold, Voyager and Crypto.com.
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