Goldmoney Inc. (TSX:XAU) has rolled out vaulted Bitcoin and Ethereum, offering insurable and auditable exposure to leading cryptocurrencies. The launch represents one of the industry’s first services to offer secure and fully-reserved offline investable cryptocurrency assets.
Per the new offering, clients will now be able to buy, sell, and exchange cryptocurrencies with a global currency basket, as well as gold, silver, platinum, and palladium bullion. The development is a key move for Goldmoney, given the lack of comparable options available on the market.
Cryptocurrencies are amongst the most volatile instruments utilized by investors. Having scored record peaks earlier this year, this month has seen a seismic decline as global regulators have clamped down on their use. In addition to this volatility, many other exchanges have been closed for a litany of concerns, adding to cryptocurrency trading uncertainty.
Goldmoney CSO Josh Crumb, inventor of the ColdBlocks standard, commented: “While institutional markets wait for a bitcoin ETF or other inefficiently-securitized financial structures, we’ve applied our first-principles approach to lowering counterparty risk and increasing accessibility in precious metals to develop a novel solution for secure and insured ownership of blockchain assets.”
Secure institutional exposure
On its part, Goldmoney Holding’s new offering constitutes one of the safest measures of exposure for these currencies to date. The service is publicly traded and regulated, coupled with insurable and Anti-Money Laundering (AML) compliant exposure.
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Goldmoney is looking to explore a new market with its offering given the current blind spot in the industry for institutional-quality solutions with regard to the digital asset marketplace. Today’s launch helps provide an ultra-secure and financially transparent solution for custody of blockchain assets, which will be available for clients.
“With today’s launch of digital asset dealing and cold storage custody, Goldmoney becomes one of the first publicly traded financial service companies to offer custody services for blockchain assets and one of the only market providers globally with fully transparent and audited Company financials; assurance of one-for-one backing of offline cold storage; and best-in-class regulatory oversight, including know-your-customer (“KYC”) AML policies,” noted Mr. Crumb.
The rollout of the new service followed months of client demand – the service will encompass the buying and selling of digital assets, safely secured in vaulted cold storage. The initial offering will extend to the two largest capped cryptocurrencies, Bitcoin and Ethereum, with additional digital assets slated for future inclusion.
Goldmoney Holdings also boasts a very broad funding interface, accepting upwards of fifty types of cryptocurrency. It will also enable wallet holders to sell a variety of cryptocurrencies and fund their Goldmoney Holding with fiat currency to access precious metals and other Goldmoney service offerings.
ColdBlocks slated for year-end release
Moreover, the group is also planning the release of ColdBlocks by BlockVault to be launched by the end of the year. Taken as a whole, Goldmoney’s service will help shore up one of the most mercurial sectors in the industry. Additionally, upwards of trillions of dollars in managed institutional money cannot presently be invested in public blockchain assets such as Bitcoin.
This is due to a lack of custodial transparency, institutional-grade insurance, AML standards for chain of integrity, and auditability under international standards. Goldmoney’s service helps satisfy these ends, reconciling counterparty risk in settlement and custody and regulatory compliance. The future addition of ColdBlocks by BlockVault will look to solve these industry constraints.
“As the market for Blockchain assets and cryptocurrencies has transitioned from its original premise of powering payments and remittances with a decentralized proof-of-work token to becoming a nascent speculative asset class, it has been perplexing to watch multiple technology companies serve as custodians for these assets – often safeguarding billions of dollars of wealth – while providing nearly zero accountability, transparency, or compliance with what are the most basic standards in the financial services industry,” explained Goldmoney CEO, Roy Sebag.