On Friday, February 13, brothers Joshua and Philip Scigala launched their trading platform Vaultoro which enables customers to keep their bitcoins in a secure place and buy gold.
Moreover, the amount of client’s initial investment doesn’t matter at all. Users’ gold is stored in vaults in Switzerland, which are operated by one of the leading physical precious metals dealers in the European Union, Pro Aurum. Pro Aurum’s reports showing how much gold members keep will be sent to Vaultoro on a regular basis.
“Vaultoro is combining the oldest currency – gold – with bitcoin, the newest currency in the world,” according to the company’s press release. “For the first time people around the world will be able to trade bitcoin and gold 100% bank independently.”
Brothers say that many bitcoin users are aiming to escape the main stream financial system, so they need to deal with the volatility of the crypro currency trading into euro or dollars:
Gold protects people against the price volatility of bitcoin without them ever having to go back into fiat currencies, which is attractive to a large number of the bitcoin community.
It’s necessary to mention that Vaultoro aims to solve the issue of dishonest exchanges. Joshua Scigala, co-founder of the above-mentioned platform, was financially hit by the infamous collapse of MtGox. That fact made him find inspiration to build “a fully auditable Bitcoin exchange”.
“The technology of bitcoin is moving far too fast for government regulators to keep up with, but the free market is demanding better answers and is starting to effectively regulate itself. If exchanges don’t produce what the market wants then they don’t get customers.”
The Vaultoro service has three types of wallets: a hot wallet used for daily trades, a warm wallet for auditing purpose, and mutisignature cold wallets, which hold the majority of users’ funds.
BDO International, one of the largest accountancy networks in the world, will audit the holdings every six months. The realease states:
“Transparency of our books is our number one priority, so Vaultoro takes full advantage of the public bitcoin ledger to constantly prove full reserves. The gold holdings are insured and audited every 6 months by one of the largest auditing firms in the world.”
In addition to that, Vaultoro’s FAQ page proves and specifies the statement mentioned in the release:
“The auditing of all gold held by Vaultoro users is processed by one of the largest and most respected auditing firms in the world, BDO. A BDO auditor, accompanied by appropriate security, will access the vaults by going through rigorous security protocols.”
Physical gold delivery is possible for clients that don’t live in a country that is currently on the EU list of sanctioned countries, and for customers that are not on the EU list of financially sanctioned persons. Customers are verified by Vaultoro and have to cover the costs of delivery, smelting and form.