Vaultoro, a bitcoin-to-gold exchange, has secured funding from Finlab AG, a fintech company based in Frankfurt, Germany.Vaultoro co-founder Joshua Scigala stated that the funding from Finlab will allow them to reach their goals faster. The first upgrade the company plans to implement will be a real-time gold-backed debit card. The card will allow the customers of the firm to hold their allocated gold — stored in a high-security Swiss bullion vault — while they can easily spend the funds anywhere Visa or Mastercard is accepted.This latest funding announcement is in keeping with Vaultoro’s history of seeking funding and support from venture capitalists and established players in the space, rather than following the recent ICO trend.In 2015, Vaultoro conducted a BnkToTheFuture raise. The funds were raised primarily from VCs, as opposed to ICOs. That same year, it hit its first $1 million in gold traded on the platform and was one of three finalists from the blockchain space to compete for the BBVA Open Talent Competition in Barcelona, Spain. Most recently, Vaultoro was selected as one of eight startups for the 2017 Techstars Berlin program.“We decided against an ICO because coins that pay a dividend are not really legal yet, equity taken absolutely illegal[ly], and we didn’t want to confuse the product with a utility coin when we don’t need one. Also, we found that so many ICOs are scams and we didn’t want to be associated with this kind of hype. We have been solidly working on making Vaultoro a name people can trust, a brand with the highest principles.”However, Scigala is not opposed to ICOs in general: “I’m not saying ICOs are bad,” he added. “In fact, I love them, I think they are the future of fundraising because they enable anyone to invest in startups. In fact, we want to launch an ICO later to enable our users to profit from our success, but we want it well thought-out and fully legal for our investors. For this reason, we decided on a standard VC funding round that would not only bring us money but also strategic contacts that will help us grow as quick as possible.”Gold on the BlockchainAccording to Vaultoro, the latest financial crises have been a cause for concern for citizens around the world. People are worried about leaving their fiat funds in a bank account while earning low or no interest. The Vaultoro debit card will allow its customers to hold their funds in gold without the need for a bank. “We see gold as a gateway to crypto. Many people don’t trust crypto, they don’t understand it, but they understand the 3000+ years of value that gold has held. We are currently building an easy-to-use euro/gold wallet so people can easily buy and save in gold. But here is the kicker. They will see a little button, spend your gold as SEPA, SWIFT, debit card or bitcoin. So, many people will want to see what that is,” he said.A Secure Store of Value“Our goal is to have real asset vaulting,” said Scigala. “We have always been a bitcoin-only business but we will bring some other promising digital assets on board. IOTA, ETHEREUM and DASH will be the first. We will also be adding silver, platinum and palladium. The wallet software will enable you to tell the card which asset you would like to spend from.”The firm emphasized that all gold is allocated in the users’ name as their legal property so that even if Vaultoro were to experience a negative event, users’ gold holdings would be protected: even liquidators wouldn’t be able to touch the assets of the company’s clients.“The most important thing about Vaultoro is that all physical assets are allocated to the user and are not on the company balance sheet. That means if anything happens to Vaultoro as a company, no one, not even liquidators, can touch our clients’ property because it has nothing to do with us. It’s the full property of our clients. We are figuring out if digital currencies can also be allocated under bailment laws,” Scigala said.By allowing users to purchase gold for bitcoins and back, Vaultoro customers can benefit from the ease of BTC payments while investing in a stable asset. Unlike bitcoin or a lot of fiat currencies, gold has a very low volatility rate. Investors can invest and trade in cryptocurrencies; however, many of them dislike the volatility associated with them — especially when there is an event that drives the prices toward the bottom, like the recent Chinese regulations on bitcoin exchanges and ICOs.“We are also working on a maker-taker trading fee model for the marketplace so people that place orders into the market don’t pay as much fee[s] as people taking an order from the order book. We hope to lift liquidity drastically.”The post Vaultoro Continues on Its VC Funding Road to Future Growth With Finlab AG appeared first on Bitcoin Magazine.
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