Verto launches USD accounts with funds 100% safeguarded for African start-ups, enterprises, and VCs
Verto, a London-based FCA-authorised Electronic Money Institution (EMI), launched USD accounts that see customer funds deposited held in protected accounts in accordance with Electronic Money Regulations 2011 (EMRs), which imposes safeguarding requirements to protect customer funds received for the provision of a payment service or e-money.
Following the collapse of Silicon Valley Bank (SVB), start-ups and tech enterprises across the globe have been looking for bank accounts that can ensure assets remain protected in the event of a financial shock. Several Y-Combinator-backed fintechs have stepped up their support in the US, including Brex and Mercury, by increasing their provision to protect deposited funds up to $2.25M and $3M respectively.
However, Y-Combinator-backed Verto has also taken an unprecedented step to support start-ups and enterprises in the African ecosystem by offering safeguarded USD accounts with 100% protection. These funds are ring-fenced and forbidden from being lent out, contrasting with the conventional traditional banking practice of investing deposited funds.
This enhancement offers levels of protection not seen before for African start-ups, enterprises and VCs that hold international currencies and ensures that their finances are always safe, secure and accessible, despite a volatile financial environment.
“The collapse of Silicon Valley Bank (SVB) is unprecedented, and we’ve been overwhelmed by businesses and VCs reaching out for support. In times like these, we believe an unprecedented response was necessary, which is why we launched USD accounts,” said Verto Co-Founder and CTO Anthony Oduu.
“Making 100% safeguarded USD accounts available for African start-ups and enterprises was not easy, but our team worked tirelessly over the past week to make it happen. We would also like to thank our global tier-1 partner banks for responding to our calls to support the African ecosystem,” continued Anthony.
Verto services half of Africa’s tech unicorns, as well as global giants including Maersk, MTN and Interswitch, making the new solution another crucial step in ensuring African businesses are given the world-class protection and tools necessary to succeed.
Verto Co-Founder and CEO Ola Oyetayo said: “As CEOs, it is our responsibility to ensure that our companies are well-positioned to navigate any potential financial crisis that may arise. In times of increased volatility, speculation, and uncertainty, prioritising safeguarding and protective measures for our business is more important than ever.”
To fast-track applications for a USD account, businesses can visit www.vertofx.com/Local-Account/USD/VertoSVB, or for additional information, reach out to Verto’s Co-Founder Anthony at [email protected].
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