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Prime Trust, a small US financial institution that played a behind-the-scenes role in various cryptocurrencies supported by the dollar, is entering highly competitive fiduciary encryption.
Exclusive to CoinDesk, Nevada's trust company began quietly offering cold storage for bitcoins in mid-July and will announce next week that it will also handle ether custody and any token issued on the blockchain ethereum according to ERC-20 .
These services are required by institutional investors, who, despite the bear market, find interesting cryptography returns, but do not want the hassle of protecting the private keys of a digital wallet and / or are obliged by law to use a qualified custodian . In cold storage, these cryptographic keys, which are like a long password and can be used to drain money from a wallet, are kept offline, on a hardware device or on a piece of paper normally locked in a safe.
However, several important names in financial services are entering this niche, with Northern Trust Goldman Sachs and Intercontinental Exchange ( ICE), the parent of the New York Stock Exchange, all looking for institutional solutions. Crypto's startups like Coinbase, BitGo and Ledger have also courted this market.
But Prime Trust claims that as a startup launched two years ago with a completely new technology, it is able to beat the big ones. Referring to the Northern Trust testing period and the uncertainty about when Goldman will come out of the bushes with a custody product, Scott Purcell, CEO of Prime Trust, told CoinDesk,
"They are Fortune entities from a trillion dollars, and they are only
Discovery of the back office
Previously, Prime Trust was known in the cryptographic space for its back office role in the so-called stablecoin announced last month by IBM and startup Stronghold. stellar blockchain, is supported one by one with US dollars that Prime Trust deposited with the federally insured banks in which it has relations.Pulcell said it is also providing this service to 10 similar projects.
He claimed that his company will be the first to offer custody for any ERC-20 token, which he described as an enterprise not a little.
Purcell said that his team solved "huge technical problem" after the c Partner partner Polymath hosted a conference in Barbados. There, his engineers were able to spend quality time with some of the ERC-20 standard authors, which allows for the creation of different tokens that represent various types of resources on the same blockchain.
"We had an engineering breakthrough that now allows us to easily conserve any ERC-20 token (together with BTC and ETH, of course)," said Purcell.
This is "great in theory, practically impossible due to various tweaks / nuances in each different token." That's why nobody does it, nobody until now. "
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blockchain news, CoinDesk is a source of information that is committed to the highest journalistic standards and adheres to a strict set of editorial policies." CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchains startup.
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