According to Stephen Moss, founder and director of Decentralised Capital, the new crypto vault is expected to take advantage of Australia‘s growing market for digital currency storage solutions, and it is a sign that bitcoin is a bona fide long term asset.
Following a spate of high profile hacks at major exchanges, resulting in losses worth hundreds of millions of dollars, industry players have developed a heightened interest in cold storage, which ensures that private keys are stored offline and away from internet thieves. The new crypto vault by Decentralised aims to take advantage of this interest, marketing itself as Australasia’s first insured cryptocurrency vault.
Speaking in a recent interview with the Australian Financial Review, Moss alluded to the industry’s need for secure and reliable crypto custody services. Giving his thoughts on the crypto industry and explaining the problem his firm is solving, he said:
“This is a solution for the next phase of the industry and it gives real security…You can’t hack your way into the safe…In my opinion bitcoin will not be remembered as the bubble, but the pin. While the short-term future of bitcoin may be debatable, the blockchain and its benefits are not.”
Cold storage is not a new concept, as it is employed by a large number of crypto holders using computer peripheral storage devices such as USB drives to store crypto wallets. Such devices, however, may remain susceptible to hackers once they are connected to the internet, and even when offline, there is a physical theft risk.
According to Moss, the new Decentralised custody service gives its users direct access to their crypto funds using a combination of security measures including CCTV monitoring, physical surveillance, biometric identification, PIN codes, alarm systems and fire control systems.
The service targets high net worth individuals, institutional investors, crypto exchanges, and ICO issuers, offering them all the advantages of cutting edge cold storage along with an in-house private WiFi room to permit safe inward and outward cryptocurrency transfers. In the event of a catastrophic failure of all defenses, all digital asset holdings are also insured.
CCN earlier reported that the bitcoin company Xapo uses a range of formidable cold storage security solutions including satellites, “deep” cold storage, and military grade bunkers spread out across five continents.
Having seen the growth statistics, Custodian’s parent company, Pallion, is now seeking to get in on the growing crypto custody market.
“While traditionally we have offered secure vault services for clients storing precious metals and other assets, we are increasingly receiving interest from clients searching for solutions to store cryptocurrency,” said Director Janie Simpson said.
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