Xapo is the next major wallet provider to employ multisignature technology, which greatly reduces the chances of successful attack by a hacker.
They’ve taken it a step further, also employing “deep sold storage,” whereby bitcoins are stored offline in physically secure locations. Xapo claims to be the world’s only bitcoin company to make such an offering, although other storage companies like Elliptic and Netagio also do so.
The company says that its guiding principle dictates that the highest levels of storage security are only achieved when private keys do not touch the internet.
Bitcoins are stored in “deep cold storage servers” located mostly in Switzerland, “housed in radio wave-blocking Faraday cages and secured behind military-grade security controls deep within reinforced underground bunkers.”
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
In addition, they have partnered with Satellogic, a startup that aims to launch hundreds of satellites to allow customers to get high resolution pictures of any place on Earth. The exact nature of the partnership remains somewhat vague, with Xapo saying it will locate specific elements of its security architecture in orbit to assure that it maintains “data immutability and ongoing physical and jurisdictional security.” Xapo is the second such company to announce an endeavor to outer space, with SpaceBit unveiling larger plans two weeks ago.
They also announced their completion of a Service Organization Control 2 (SOC2) Type I audit, conducted by a leading US accounting and consultancy firm.
Also, its vault services will now be free of charge, and customers who have paid an annual storage fee will receive a prorated refund.
The company landed a record $40 million in funding six months ago, but now faces the task of monetizing its offerings as it looks to grow with the Bitcoin ecosystem.