G4S, a multinational security company based in the UK has developed a “high-security” offline storage solution for cryptocurrency and other digital assets. Relying on its expertise in securing high-valued items and its risk consulting experience, G4S is delving into the crypto industry to offer secure, cold storage for virtual currencies.
G4S’s Security Solution for Storing Cryptocurrencies
Mainstream adoption of cryptocurrency has unwittingly drawn the attention of criminal elements. This year alone has seen the loss of nearly $1 billion worth of cryptocurrencies to security breaches. These thefts usually involve gaining unauthorized access cryptocurrencies stored in exchanges’ hot wallets. Even cold storage has not proven completely unbreachable with cases of kidnappings and armed robberies.
Taking all these security weak points into consideration, G4S is offering offline, highly-secured storage for crypto assets. In a news publication on its website, the company stated that this is the result of working with exchanges as clients, understanding the intricacies and complexities of their operations and that of cryptocurrencies.
Speaking on the company’s storage solution, Senior Risk Analyst Dominic Maciver had this to say:
Our security solution is built on a foundation of “vault storage”. We not only take the assets offline, but break them up into fragments that are independently without value and store them securely in our high security vaults, out of reach of cyber criminals and armed robbers alike. Access to these sites is heavily restricted with multiple layers of security and robust protocols, and only when all the fragments are combined with specific technology can they unlock access to the value stored within.
Bridging the Security Gap in The Cryptocurrency Industry
The prevalence of cryptocurrency theft creates a gap in the industry for specialized storage solutions. Various reports show that institutional investors are wary of the holding large amounts of cryptocurrencies due to these attacks. To fill this gap, various companies are launching custody service solutions for large-scale investors.
Coinbase a cryptocurrency exchange also operates a cryptocurrency custody service for institutional crypto investors. Launched in July, the custody service which offers cold storage facilities is currently available to clients in Europe and the US.
Earlier in the week, American brokerage giant Fidelity Investments also launched its own storage solution. Other traditional establishments like the Bank of America have expressed their intention to offer cryptocurrency custody services for large-scale investors. The bank filed its second patent related to this in August.