Decentralised Capital, a blockchain assets and investments firm, has announced on Sunday that it has formed a partnership with safety deposit box group, Custodian Vaults, part of precious metals firm Pallion Group.
The partnership endeavors to create the first insured cold storage vault for digital assets in Australasia. According to Decentralised founder and director, Stephen Moss, the crypto vault aims to take advantage of Australia’s growing market for storage solutions in the digital currency market. It also reflects Moss’ view, who believes Bitcoin is not a bubble waiting to burst.
According to a report from the Australian Financial Review, Moss commented on the partnership: “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.”
One of the main concerns in the cryptocurrency industry is security. In fact, it has been a big issue for the market as digital assets are prone to hackers.
The issue of security has been at the forefront of the industry following numerous cyber attacks. One notable attack was on the Japanese exchange Coincheck this year, where around $US530 million was stolen.
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While there are ways of protecting cryptocurrencies from hackers, such as storing them on an offline external hardware device, these can be stolen.
With this in mind, the new vault will provide customers with direct access to their holdings. It will combine physical surveillance, biometric identification, pin codes, CCTV monitoring, alarm and fire control systems.
If all of these lines of defense fail, the cryptocurrencies are also insured. However, Moss did not disclose whether it will be Decentralised or Custodian Vaults who will insure the digital currencies.
According to the report, the vault will target both wealthy and institutional investors, plus exchanges and initial coin offering issuers.
Commenting on the partnership, Pallion director, Janie Simpson, said: “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.