A military-grade bunker has set up its vaults in Swiss Alps to profuse cryptoasset investors, institutions and corporations in an attempt to find a more secure place to keep their digital currencies.
Swiss Crypto Vault, a joint venture between Swiss Gold Safe (a company which keeps high value metals, art and many other precious in alpine vaults) and Bitcoin Suisse, Zug-based crypto financial services firm, is placing itself as a quasi-private financial institution for bitcoin plus many other tokens at a particular moment when traditional banks reject to go anywhere close to cryptocurrencies. Since the vault doesn't mix valuable client assets with the balance sheet of the company, it doesn't require a banking license to work.
Vault services an increasing need from large net worth individuals (HNWI), family offices and hedge funds to high securely store huge amounts of cryptoassets that are often targeted by many hackers. A Lot of instances by experienced criminals attacking bitcoin millionaires in their homesteads requesting the digital private keys that unlocks the doors to their cryptocurrency accounts have been happening.
This giant innovation comes up as the increasing population of millionaires and different institutions are highly investing in blockchain startups through initial coin funding ICOs crowdfunding schemes.
During Initial Coin Offerings, most startups spawn public funds by sacrificing tokens that can be used to run new technologies or just to trade for bullish profits. In most cases, tokens are normally bought by potential investors in cryptocurrencies.
ICOs increased $6.3 billion (CHF6.2 billion) within the first three months of 2018, exceeding the total that was accumulated for the whole of last year. Crypto experts predict that over 80% of these accumulated funds are being collected from/by professional investors and HNWIs.
The leveraging reputation of Switzerland for high growing blockchain expertise, discretion and political stability, Swiss Crypto Vault has concealed its "banking grade" servers far deep in an isolated place in the Alps. All clients are able to securely keep their Cryptoassets and withdraw them at any time through a special web portal from any location across the globe.
An additional layer of tight security needs the Swiss Crypto Vault, client and a third-party handling partner to verify withdrawals at once such as the system of many key holders being required to unlock a safe deposit box in a given bank Vault.
Xapo, the Swiss-based crypto firm also started up a vault in the Swiss Alps and the Swiss Crypto Vault confirmed that the technology being used by Xapo is so unique.
For all Crypto investors operating on a small scale, hardware known as digital wallets (which is like the size of a USB stick) normally offers adequate security to cold store assets not on Internet away from deadly hackers. Various solutions have been provided to many investors that normally pile millions into tokens.
Among these include Zug-based Crypto Storage and Swisscom, a state-managed telecommunications provider. Swisscom Blockchain division that was created recently, has merged up with software and hardware producers to offer a custom secure storage service for potential investors.
Daniel Haudenschild, CEO Swisscom Blockchain said that people are currently investing millions into tokens. So the moment such volumes are got, the normal ways of keeping these assets are no more viable.
He further noted that there is a window of few years they have before giant providers begin providing cryptocurrency vault services on an industrial scale. Up to when the heavyweight players also begin making this service readily available, this will be a more premium business line for all those financial institutions such as banks that are willing and able to provide it to their own clients.