Lendingblock Partners With Vo1t to Provide Cryptoasset Custody

Lendingblock, the securities lending exchange for cryptoassets, today announces that it has partnered with cryptoassets custodian Vo1t to provide a military-grade cold storage capability for its institutional lending exchange.

Vo1t will support Lendingblock’s platform by offering a 24/7 global custody service that will ensure funds are kept in high security cold storage while still being accessible within 30 minutes by Lendingblock and clients. Importantly, clients’ funds are kept segregated, preventing the commingling of assets and maintaining transparency around how a client’s assets are being handled and stored.

Funds will only be transferred out of cold storage to be sent back to the borrower upon loan maturity or liquidated and sent to the lender in the event of loan default.

Charlie Beach, Chief Operating Officer at Lendingblock said,

We’ve conducted an extensive review of custodial providers, and we chose Vo1t because we believe they are an industry leader in providing an insured and secure, multi-asset custodian system that meets our primary goal of protecting our clients’ assets. Vo1t’s ability to release funds rapidly further provides our clients with the flexibility required to carry fast transactions through our platform. Lendingblock’s partnership with Vo1t signifies a significant step towards building the robust market and financial infrastructure necessary to bring further institutional participants to use digital asset lending as part of their daily investment strategies.

Miles Parry, CEO at Vo1t said:

We are delighted to be working with Lendingblock, as they bring the benefits of securities lending to crypto institutions through their professional digital assets lending exchange. The decision recognises Vo1t’s strong commitment to providing the utmost safety security measures taken on behalf of clients’ digital funds.

Vo1t’s features include extreme security measures such as multiple layers of encryption of private keys, geographic distribution of private keys, thermal, vibration and motion detection, Faraday shielding to prevent against wireless infiltrations, 24/7 patrols and alarm monitoring with police response.

Under the partnership funds transferred to Lendingblock and secured by Vo1t are covered by a dedicated crypto assets insurance programme.

Zuckerberg Says Libra Can Boost Facebook's Ad Revenue, China Sees It as a Much Bigger Deal

Facebook CEO Mark Zuckerberg has, during a shareholder meeting, explained how the Libra cryptocurrency project will help the social media giant make money. China, on the other hand, published a book addressing the challenges Libra poses, arguing it could become the future of world currency.

In a transcript posted by Thomson Reuters, we can read Zuckerberg replied to a question asked by a shareholder on how Facebook will be making money off of the Libra cryptocurrency project. Zuckerberg responded by going into Libra’s potential impact on e-commerce on Facebook, and its potential impact on advertising revenue.

According to the social media giant’s CEO, Facebook does not charge a set price for ads and instead works with a bidding system, where every business trying to advertise will bid to compete for ad space. The system, Zuckerberg said, allows them to get the “lowest possible price.”

He added that combining ads with an effective payment tool such as Libra can benefit businesses further as it could make commerce more efficient:

If we can make commerce be more effective for businesses if when they run an ad, somebody who clicks on that ad is now going to be more likely to buy something because they actually have a form of payment that works that’s on file.

Advertising on Facebook, as such, becomes more worthwhile for businesses, which could in turn see them bid higher on ads and increase overall ad prices. This would effectively boost Facebook’s 0s advertising revenue.

Zuckerberg also reiterated other advantages of Libra, pointing out the payments infrastructure “hasn’t been updated in a very long time.” China, which has plans to launch its own digital currency called DCEP, sees Libra as more than a way for Facebook to make money.

Libra Could Hit China’s Efforts to Increase Yuan Influence

In a book published by the Central Party School of China to educate government officials on digital currency and propose policy measures to deal with emerging challenges like the Libra project, experts argue the latter is an excellent example of a public-private partnership and has the potential to become the future of world currency.

This would mean, according to the book titled “Discussing Digital Currency with Leading Officials,” that Libra could get in the way of the Chinese government’s attempt to increase the influence of the yuan.

Hongzhang Wang, former chairman of the China Construction Bank and one of the authors on the book’s preface, said in a recent article:

China originally relied on mobile payment to get ahead, but now Libra has the potential to change the game again.

Wang added that this would allow companies in the U.S. to build a digital currency system that could “threaten or even surpass” Alipay and WeChat Pay using blockchain technology.

Featured image via Unsplash.