Institutional investors are watching digital assets closely as Bitcoin (BTC) continues to rise above all-time highs, hitting nearly $ 24,000 for the first time in history.
Recent results from a Bank of America and Merrill Lynch survey conducted December 4-10 show that about 15% of fund managers managing $ 534 billion believe Bitcoin is the third most visited transaction after long tech stocks and card sales. American dollar. Additionally, a recent Fidelity study found that nearly 36% of respondents, or 774 institutional investors, owned cryptocurrencies.
However, as Bitcoin continues to attract the attention of professional investors around the world, security measures combined with insurance guarantees are more important than ever. This is especially true because more and more traditional managers and banks are adding support for digital assets.
Offline security is important to protecting your digital assets
A report published by Big Four KPMG this year shows that the most important major action for crypto asset owners who want to build a sustainable business model is to ensure the next generation of security and resilience. The KPMG report notes that this includes the use of pioneering encryption technologies, including multiple signatures, multi-party computing and cutting, and dedicated physical devices. In other words, both online and offline security measures are required to protect digital assets.
Lior Lamish, CEO and co-founder of GK8, an Israeli blockchain cybersecurity firm, told Cointelegraph that when it comes to traditional, high-net-worth and reputable organizations that need to be managed, offline security measures, in particular, are essential to protection. From digital assets:
Since the blockchain is an immutable ledger, organizations must do their best to avoid piracy. When it comes to hot wallets, it’s easy to see why they’re so weak – they’re always online. However, this is not enough for traditional banks and managers. ”
For example, Lamish said the team of former Israeli military security experts behind GK8 has developed a completely independent solution for traditional custodians and banks who want to protect digital assets. It consists of an air-gap cold store that provides the ability to establish transactions on the blockchain network while working completely offline.
Lamish said the offline blockchain transaction process eliminates all potential attacks on users’ private keys, providing complete protection against cyber threats. While failing to reveal all the details, Lamesh shared that this solution is made possible by patented cryptography that allows the treasury to create, sign, and send blockchain transactions in a one-way connection without receiving any digital input that might contain malicious code. Additionally, GK8 cold storage has $ 500 million in insurance coverage.
Traditional gamers think offline storage is a must
One company that uses an offline storage solution is Prosegur, a Spanish security company that provides physical security to traditional banks and manages more than 360 billion euros annually.
Last year, the company was attacked by Ryuk ransomware, a Trojan horse virus that encrypts files on a compromised device and usually requires payment in bitcoin to decrypt it. The attack is a concern for a number of reasons, but security has become a higher priority for Prosegur since the company launched Prosegur Crypto, a service for storing and managing digital assets.
Raimundo Castilla, CEO of Prosegur Crypto, told Cointelegraph that Prosegur’s new service is designed to meet the growing demand for digital property protection, especially as more organizations start participating in cryptocurrencies.
Castella said the company has explored a variety of security offerings, including cloud-based solutions and encryption based on hardware security modules. However, he noted that a stand-alone solution is different in that it does not present any risk of potential external attacks due to the fact that it is completely independent. “This is definitely the most secure solution that we have come up with, and it is exactly what we were looking for as security experts,” he said.
However, companies like Prosegur aren’t the only ones opting for stand-alone security solutions. OSL, one of the leading digital real estate platforms in Asia and a member of BC Technology Group, is also using standalone security protocols of a military nature to protect the digital assets of hundreds of institutional clients and professional investors.
“These include online and offline military security protocols, stringent anti-money laundering, knowledge of customer requirements, market monitoring, and customer asset segregation,” OSL CEO Wayne Trench told Cointelegraph.