IBM Makes a Move into Cryptocurrency Custody
By Mark Lemon – Cryptocurrency Professional
New York-based IBM have partnered with investment firm Shuttle Holdings to launch the beta version of its custody solution for storing cryptocurrency assets built upon IBM’s private cloud. Both Shuttle and IBM won’t be holding the coins and tokens but provide the infrastructure and tools for others to use. Institutions may soon have a secure solution for buying crypto and subsequently store using this system.
IBM and Shuttle are targeting a launch date in late March for institutions to use their infrastructure from banks, custodians, funds, exchanges, high net worth investors and brokerages like BC Bitcoin. The service will not go live to the public initially as Shuttle wish to test its solutions with clients able to handle the cryptocurrency stress.
IBM’s cloud infrastructure provides businesses with some of the most secure, fastest and lowest latency technology. This solution using IBM’s cloud is not the conventional storage users would expect from a custodian. Institutions that buy and sell cryptocurrency and store using this infrastructure will not be secured through cold storage.
This custodian solution will store private keys in the cloud under many layers of industrial-grade encryption. Though the industry does not view a solution like this as secure as cold storage, IBM has some of the best security systems in the world. Shuttle have also described their tools as ‘just as secure, if not more secure’ than a normal cold wallet solution.
Neither Shuttle or IBM have elaborated which assets the infrastructure will support, and the system could be universal. A universal solution will encourage more that buy and sell cryptocurrency to use as all their assets can be in one place if required.
This custodian has its advantages as clients will have access to their stored assets almost instantly. Many of the targeted institution will regularly buy and sell Bitcoin which requires a solution with faster access than cold storage, otherwise a hot wallet which is less secure must be used.
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