Vo1t provides military class cold storage custody for institutions, with insurance protection on deposits from AON. The team consists of experts in physical & cyber security as well as bankers; with alumni from establishments such as the Ministry of Defence, Goldman Sachs, and the FCA.
For the last 2 years Vo1t has trimmed the fat around cold storage without compromising security – enabling safe housing of any digital asset with withdrawal from cold storage in less than 2 hours.
Miles Parry, CEO:
“Over the last 12 months we have been building on our foundational success. Some market participants want their assets completely offline, fully segregated, and off the radar of any third parties – we brought that to market in 2017. Other participants don’t want cold storage to mean a drag on the balance sheet, so today we are delighted to open the Vo1t Prime Account.”
There are no setup fees, only a minimum balance requirement of $1 million in digital assets, for institutions to benefit from Vo1t’s cold storage account and earn a yield on assets held on deposit. The interest is generated from over-collateralised lending. A minority percentage of the client assets enter Vo1t’s Strategic Lending Program to be loaned to Vo1t approved borrowers.
Sebastian Higgs, Director:
“The prime account is comparable to a brokerage account held at an agency lender such as State Street or BNY Mellon. We want to be transparent in the arrangement, highlighting the rewards but also the risk which is designed to be ultra-conservative. This arrangement is suitable for institutions looking to make a passive return on their cold storage digital assets as a value add within their broader portfolio strategy.”
Vo1t have also confirmed that there is no liquidity lockup, the over-collateralised loans are callable so deposits can be withdrawn on demand by the client. The other important aspect is that the dollar value of collateral exceeds the amount on loan and is housed in Vo1t’s insured cold storage for minimal risk and is fully segregated.
The interest return has been highlighted by Vo1t as dependent on the appetite of pre-approved borrowers and market rates (currently averaging 4% on BTC and rising as you go down the market cap table).
“At Vo1t we continue to add value for our clients. This is the first step in a broader approach towards yield enhancement services and we expect to have further announcements around this soon.”