GoldMoney Group, one of the largest precious metal storage companies in the UK, has launched a spin-off aiming to provide maximum security for bitcoin holders. The new entity, Netagio Digital Currency Brokers, joins a growing list of players offering similar services to clients seeking bank-grade protection of their bitcoin investment. Among them are another UK-based company, Elliptic, who recently launched their Vault solution.
As their name suggests, Netagio is clearly not shy about its move into the digital currency space. They are already advertising their Bitcoin buying/selling services- which don’t even exist yet but are said to be coming soon.
Large prospective bitcoin investors and long term holders are likely to gravitate to a turnkey solution that lets them buy and then immediately safely store their currency, analogous to long term gold buyers of “yesterday” looking for the same thing. Once launched, it will be interesting to see the localized effects on market movements arising from their clients who will then be more confident in the security of their investments.
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It is unclear how much the company leverages its physical precious metal vaulting capabilities for digital currencies. If their value-add is solely technical in nature, it would be a grand irony and an impressive feat. They simply advertise that the bitcoins are stored in “in secure locations around the EU and Switzerland” but they “can’t tell you exactly where your Bitcoins are stored” for security reasons.
Here is a comparison of some of the features of each solution:
|Security Measure(s)||“Deep Cold Storage”||ISO27001 Standard + 2 Factor Authentication|
|Underwriting/insurance||Lloyd’s of London||N/A|
|Fees||2% of deposit per annum||unknown|