What is the safest way to store digital currencies? The answer to that question could decide the biggest winners in a multibillion-dollar race to determine what companies will be the leading custodians of cryptocurrencies, which are increasingly being used by money managers and other institutions for themselves or their clients.
Decentralized identity startup Civic Technologies announced a partnership with BitGo to build a crypto wallet that maintains anonymity while offering a back-up solution.
Created through a partnership with BitGo Trust, the retirement account features $100 million in insurance protection, 30 percent lower wallet fees, and the ability for clients to diversify their holdings in 12 digital assets.
Cryptocurrency processor and digital-asset custodian BitGo has achieved the SOC 2 Type 2 security certification, saying it will provide an edge in attracting institutional investor interest.
The six‐year‐old company, which was a digital‐wallet pioneer and currently processes $15 billion of Bitcoin and other cryptocurrency transactions per month, has sought to differentiate itself through an independent custody offering. Co‐founder and CEO Mike Belshe has called custody “the missing piece of cryptocurrency market infrastructure [that] has kept institutional investors out of the market.” Last year it obtained a South Dakota state charter for BitGo Trust Co., described as “the first qualified custodian purpose-built for storing digital assets.”
While users of the troubled Quadriga CX cryptocurrency exchange remain unable to retrieve millions in funds, a startup backed by mainstream companies such as Goldman Sachs says they’re able to offer some protection.
BitGo Inc., which provides custodian services on more than $2 billion in digital assets, said it has obtained a policy of as much as $100 million through Lloyd’s insurance marketplace that covers the offline storage accounts known as cold wallets that are at the center of the Quadriga debacle.
Crypto security company BitGo is making good on plans to facilitate insurance for digital assets by providing $100 million of cover against theft or the loss of cryptographic keys via the Lloyd’s of London insurance market.
The announcement comes in the wake of the QuadrigaCX debacle, where the exchange announced it could not access its cold storage wallets following the death of its founder and CEO, Gerald Cotten, as he was the only company employee to know its private keys.
Crypto custodian BitGo says it has passed an advanced security review by an outside monitor, claiming to be the first crypto startup to receive this level of certification.
Specifically, the company got a SOC 2 Type 2 certification, a standard security audit performed by an outside monitor assuring that a company keeps its security practices in order.
The dichotomy of regulation and security are seen by some as opposing forces, and others as one that can provide unifying stability to the cryptocurrency industry. Irrespective of the views, at a juncture where scams, frauds, and misrepresentations are running rampant in the industry, regulation and security are undoubtedly a priority.
Security is one of the most important factors in ensuring that any blockchain or crypto platform can be trusted. Users want to know that their funds and their assets are secure, whether they are individual investors or major companies. In January, the Gemini exchange made headlines when they received a SOC 2 Type 1 certification from Deloitte, which BitGo soon followed. However, in an effort that appears to be meant to get ahead of potential competition, BitGo has now received a SOC 2 Type 2 certification.