VaultBank, found online at VaultBank.io, is a blockchain bank that offers a blueprint for financial services without an intermediary. Find out more about VaultBank today in our review.
What Is VaultBank?
VaultBank describes itself as a “blockchain bank” that offers “a blueprint for disintermediated financial services.”
The platform is a global investment firm that offers quarterly dividends through its VaultBank tokens. Those tokens are backed by secured credit assets.
VaultBank will also serve as an exchange for investors, offering liquidity, security, and peace of mind that comes with dealing with fully-compliant bank.
In more straightforward terms, VaultBank lets you add value to VaultBank tokens, then spend those tokens through debit cards. It’s the first time you’ve been able to use an asset-backed security as tender for purchases. It makes securities more liquid and usable than ever before.
The VaultBank token sale begins in November 2017.
How Does VaultBank Work?
VaultBank plans to offer four primary paths to value creation with its VaultBank tokens. Token holders can add value to VaultBank tokens through an asset backed credit portfolio, which includes all of the following:
- A VaultBank Card that allows investors to use a security position as tender
- VaultBank Tokens that empower high liquidity and low transaction costs
- Insured portfolios, including quarterly dividends given to token holders, generated by CBL insurance surety wrap
- High yields from an asset-backed credit portfolio built by Random Forest Capital, with leverage provided by Mitsubishi Bank
Overall, VaultBank believes its tokens will revolutionize investment strategy and expected investment liquidity. These tokens create value through a quant approach to portfolio management, while still “maintaining the solvency and security expected of any major financial institution through a team with decades of experience managing trillions of dollars for the largest firms on Wall St and around the world,” explains the official website.
to achieve these goals, VaultBank combines financial industry expertise, machine learning talent, and blockchain technology.
Some of VaultBank’s core features include all of the following:
Usability And Debit Cards:
VaultBank will provide debit cards that will be accepted worldwide. Debit card owners can choose from multiple cryptocurrencies to use as tender. The cards can be accepted at existing point of sale terminals, which, according to VaultBank, marks “the first time an asset backed security will be able to be used as tender for purchases.” VaultBank will provide transaction services for cryptocurrencies and 17 different fiat currencies, allowing investors to use their debit cards (and securities) as legal tender anywhere in the world.
VaultBank uses a smart contract intermediary and blockchain technology to limit overhead expenses, allowing the company to offer considerably lower fees than hedge funds and other financial management structures.
Hedge funds traditionally seek credits offering the highest yields and lowest default rates for a top portfolio performance. VaultBank aims to offer a similar model, where yields of these credit assets will be reinvested back into the fund. Yields are passed onto investors through appreciations in the VaultBank token price, representing their stake in the performance of the portfolio.
Token And Depository Returns:
VaultBank token and depository returns are provided by a secured cash yielding portfolio. VaultBank token holders have three yield sources, including asset backed credit portfolios (built by Random Forest Capital with a credit warehouse from Mitsubishi), VaultBank token buybacks (to ensure scarcity and depreciation), and yields from credit assets distributed with Ethereum dividends. In terms of depository returns, VaultBank has a CBL Insurance surety wrap to ensure a return on USD deposits. Deposits are also insured by CBL.
The VaultBank Token
The VaultBank ecosystem revolves around the VaultBank token, or VB. There’s a total supply of 200 million tokens.
Each token represents a non-voting share in the fund, and provides each token holder with an equitable interest in the underlying performance of the portfolio of credit assets.
The VaultBank investor plan includes leveraging the token wallet to purchase a cash yielding loan portfolio. That portfolio will be tied equitably to each token and yield a secure annualized yield.
The price is set at $1 USD = 1 VB token.
50% of the total supply of tokens will go to investors. 49.5% will go to the team, and 0.5% for bounties.
Who’s Behind VaultBank?
VaultBank is led by Austin Trombley, Chief Technology Officer, Christopher Cummock, Managing Director and Founder of Cummock Asset Management, and Stuart Shelley, Chief Operating Officer and Former Principal at Bank of America.
The VaultBank Fund is a Cayman partnership, while VaultBank, PLC is based in Singapore.
VaultBank has partnered with Random Forest Capital, LLC, CBL Insurance Ltd., Ambisafe, PFSC Portfolio Financial Servicing Company, and Mitsubishi UFJ Financial Group.
VaultBank aims to build a blockchain-based blueprint for disintermediated financial services. The company itself is a global investment firm that offers quarterly dividends to all VaultBank token holders. These tokens are secured by credit assets. VaultBank aims to offer the regulatory compliance and security of a bank while giving investors the benefits of a digital economy.