As it transitions to a "web3 bank", EOS has been renamed Vaulta and plans to launch a new Token.

Source: The Block: EOS, the public blockchain launched in 2018, aims to compete with Ethereum and will be renamed Vaulta, shifting towards “web3 banking.” EOS Token rose by 2% to approximately $0.52 and will be exchanged at a 1:1 ratio with the new Vaulta Token starting in May, provided the proposal is approved.

Since its launch in 2018, EOS development company Block.one has had a remarkable development history, including the $41 billion initial coin offering (ICO) that led to fines from the U.S. Securities and Exchange Commission (SEC), as well as the launch of a cryptocurrency exchange.

EOS will be rebranded as Vaulta and transformed into “web3 banking”. According to Tuesday’s announcement, if the proposal is approved, existing EOS tokens will be able to be exchanged for new Vaulta tokens starting in May. The new Vaulta token will be listed on the 136 exchanges currently traded on EOS. The Vaulta team said the ticker will be announced at a later date, along with more technical details.

Vaulta will be built on the existing EOSIO software and integrated with exSat, which is a “layer of docking” that brings smart contracts to Bitcoin. This cross-chain system will have a 1-second transaction finality and support C++ and EVM-compatible smart contracts.

Vaulta’s “web3 banking operating system” will provide a range of institutional-grade financial services through partnerships with projects like Ceffu, Spirit Blockchain, and Blockchain Insurance. Spirit Blockchain facilitates the fractional ownership of traditional illiquid assets such as real estate, commodities, and private equity, while Ceffu offers custody, staking, and Bitcoin yield strategies.

The Vaulta Bank Advisory Committee will include financial and blockchain industry experts from Systemic Trust, Tetra, and ATB Financial.

“The time has finally come. After years of building the foundation behind the scenes, the original EOS network is about to redefine the banking landscape,” Vaulta stated. “The global demand for cryptocurrency has surged, and the public’s demand for innovative financial products has reached an all-time high.”

EOS was once a $18 billion Blockchain, marking the latest chapter in its development. EOS is a network created by Block.one founders Dan Larimer and Brendan Blumer, designed to address the scalability and usability issues of early Blockchains (such as Ethereum) through an innovative Delegated Proof of Stake (DPoS) consensus mechanism, providing high transaction throughput and lower user fees. Token holders nominate 21 Block producers to manage the network.

The project attracted a lot of attention when it was announced, but it didn’t quite live up to expectations due to Block.one’s huge initial coin offering. Today, it exists as the 16th most active smart contract chain. The EOS token sale lasted almost a year and raised $4.1 billion worth of ETH.

Block.one reached a settlement with the U.S. Securities and Exchange Commission in 2019 regarding its Token sales, paying a $24 million civil fine—this accounted for only about 0.58% of its record fundraising amount—and did not admit any wrongdoing.

In 2021, Block.one’s CEO Blumer (a former game designer who renounced his US citizenship) announced that Block.one would focus on new business directions, including the launch of the crypto exchange Bullish Global, funded by Peter Thiel.