Author Topic: Can BitShares offer Vaultoro decentralized banking services?  (Read 6251 times)

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Offline Permie

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    Hello, I'm contacting Vaultoro on behalf of the BitShares community about a mutually beneficial and profitable arrangement.
    How much does Vaultoro know about the decentralized exchange BitShares?
    Vaulturo could profit from integration with BitShares by collecting fees from any assets Vaultoro issue on the BTS exchange.

    Vaultoro allows trading of gold bullion stored in insured, audited Swiss vaults against bitcoin.
    They do not have any fiat banking services due to the added regulatory burden and the increased fees that would result.
    I'm sure they could attract even more customers if they integrate with BitShares and could accept decentralized tokens that track the value of real world stable currencies and commodities (known as bitAssets) such as bitUSD and bitGold. With BTS integration Vaultoro could allow a 3rd asset (bitUSD) for their customers to hedge against eachother and could accept the value of dollars without the banking costs.
    Vaultoro would be insulated from regulatory burden and could collect fees on any UIA's they issue.
    A UIA is a User Issued Asset. Vaultoro could issue a UIA that represents a share of gold in their vaults. The UIA would be backed by the promises and reputation of Vaultoro to honour their debts. This UIA could then be traded on the BitShares decentralized exchange against any number of other assets.
    Vaultoro profit from access to a new potential customer base (BitShares users) and profit from all of the trading fees of the Vaultoro UIA. Such fees can be set by the issuer (Vaultoro).

    For more information about UIA's in general, please see http://wiki.bitshares.org/index.php/BitShares/UserAssets

    There is currently a forum post discussing Vaultoro and BitShares integration which you may wish to visit to ask questions here: https://bitsharestalk.org/index.php/topic,16724.0/topicseen.html

I used their 'Send message' feature on their website, best case scenario somebody representing Vaultoro makes an intro post here

Once there is more official looking documentation I'll contact them again
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Offline xeroc

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Is this at all possible?
I'd say so .. yes

However, there will certainly not be an official partnership between BitShares and Vaultroro .. simply because BitShares is a technology and a decentralized company.
They still can do business with BitShares being an independent entity leveraging the tools of the blockchain.

I'd say: Go for it, get in contact with them. Inform them about the BitShares DEX and most importantly: tell them how they can make a profit.
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Offline Permie

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http://www.vaultoro.com/
Allow trading of gold bullion stored in insured, audited Swiss vaults against bitcoin.
They do not have any fiat banking services due to the added regulatory burden and the increased fees that would result.
I'm sure they could attract even more customers they could integrate bitFiat and bitGold as they could allow a 3rd asset for their users to hedge against eachother. Vaultoro would be insulated from regulatory burden and could collect fees on any UIA's they issue.
I think BitShares should establish a relationship with them as among other things such a partnership provides bts with a physical gold:bitGold and bitFiat:Physical Gold market to tighten the peg and increases liquidity.
Yet more opportunities to tighten the peg of bitAssets.

If Valutoro accepted bitUSD for gold an average joe banking user would still have to purchase bitFIAT with a bank card, and then send the bitUSD to Vaultoro or any company wishing to avoid traditional fiat integration.
What if BTS can facilitate this transaction in just one step?

The user enters the destination account for the bitUSD and is then presented with banking account numbers etc. to make their payment. The entity providing this service is presented with the risk of a charge-back or fraud.
If this entity could profit from UIAs or referral fees such that it more than covers such risks of fraud then it may be able to provide a service that doesn't require such extensive KYC measures.
Could existing exchanges like CCDEK provide this service?
A user who visits the vaultoro (example) site and wants to buy Vaultoro gold but pay with fiat could be directed to a payment window that links to participating exchanges. Within the window the user provides relevant details in order to purchase the gold. Hopefully after not too much form filling the customer's purchase is complete.
Under the hood, the customer has just bought bitUSD from the Exchange to the value of their purchase of gold at Vaultoro, plus a small fee. The Exchange immediately make payment in the same amount to Vaultoro. Vaultoro then transfer ownership of the gold to the customer. BitUSD transfers are as good as instant, and so long as the exchange can transfer the bitUSD to Vaultoro in a timely manner then the trade will be rather seamless and the customer can use their bank card (ease of use), Vaultoro have no extra regulatory burden and profit from an increase in potential customers, the exchange makes money on the spread, and BitShares benefits from liquidity.

Is this at all possible?


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