December 22, 2018
Wuzu’s Custodian Cold Wallet. The institutional solution for digital assets!
Custody solutions (service provided by a third-party for security and storage of digital assets) are the latest development to emerge from the cryptocurrencies ecosystem. The launch of custodian services is expected to unleash the entry of institutional capital into the market, acting as the missing link for investors and fund managers that have been seeking entrance into the crypto sector. It’s estimated that up to US$20 billion worth of investor’s demand is sidelined until proper custody solutions are implemented. Wuzu, with its state-of-the-art technology, is ready to assist the inclusion of large institutions in the digital finance industry.
Wuzu’s Institutional Cryptocurrency Custodian Service
Wuzu’s custody solution fully safeguards cryptocurrency assets on an institutional level. Until recently, major financial player such as banks, hedge funds, and family offices, were unable to participate in the digital asset economy due to the lack of a solution to large amounts of capital in the form of digital assets. It all lies on guarding the private keys, which are used to sign and approve transactions. They are challenging to remember and can be stolen or hacked. Online wallets or even hardware wallets have proven to be unsuited to financial institutions due to events that demonstrated their susceptibility to theft. The same is true to centralized cryptocurrency exchanges.
Wuzu’s Multi-Signature Wallet: Bringing security to the ultimate level!
A multi-signature (often called multisig) is a form of technology used by Wuzu to add additional security for cryptocurrency transactions. Multi-signature wallets require another user or users to sign for an operation before it can be broadcast onto the blockchain. The required number of signatures is decided upon the wallet creation. Such wallet can be formatted in several ways. For instance, a client could have five different keys for its Wallet and would need to use three of them for transaction validation (3-of-5 Multisig).
Since the nature of blockchain is to remove third parties from operations, it has been challenging for international security commissions to come up with proper regulations to protect large institutions form safety vulnerabilities related to cryptocurrency transactions. However, progress has been made, and multisig signature wallets is a step closer to regulatory consensus globally.
Custody is essential to the cryptocurrency ecosystem because it is a critical factor for institutional participation in digital asset economy. Wuzu’s custodial solution allows a greater number of market participants to become involved in the crypto ecosystem without having the difficulties of adequately securing assets or having to deal with regulatory issues. For more information, visit our website and get in touch with us. We are able to find the right solution that perfectly suits the needs of your institution.