Blockchain protection company, Coincover, has launched its Protected Co-Signing product to further reduce the risk in digital asset transactions.
The new service adds an additional layer of protection onto the existing co-signing model within digital asset custody. The emergence of multi-sig wallets has allowed different parties to share custody and reduce risk of loss from disaster scenarios. The addition of Coincover’s proprietary technology into the co-signing model further reduces the risk of transacting digital assets. Working closely with its partner Onramp, Coincover’s implementation of this technology will automatically screen transactions for any of its security risks, such as cases of fraud or hacking. However, the solution also provides a failsafe by applying Coincover’s insurance-backed warranty to transactions. Coincover says that the result is an extremely secure way to sign transactions.
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Bitcoin’s history is peppered with examples of custodial problems and cases of loss, whether caused by misplaced private keys, fraud, or an exchange hack. These instances have deterred investors and prevented large pools of capital from entering the space.
The unique properties of private keys used in the signing of cryptocurrency transactions, mean that there are risks involved in digital asset custody that can lead to funds being lost forever. Custody models which trust a single entity to sign transactions, such as single-institution custody or self-custody, can result in a single point of failure.
Onramp: pioneers of multi-institution custody for Bitcoin
Onramp is the first Coincover partner to bring this offering to life. This ensures that their customers immediately benefit from extra layers of security. The solution, however, is available to all custody platforms that use key material distributed between multiple entities to sign transactions.
Alex Saleh, Head of Partnerships at Coincover, said: “This is another step forward in the evolution of digital asset custody. As transactions have developed over the years, certain industry pioneers have created ways to make cryptocurrencies safer to hold and transact. Now, we’re taking this to the next level. Our aim is to encourage greater trust in digital assets at the institutional level. Protected co-signing provides the ultimate layer of protection. Even if something goes wrong, there is a safety net, allowing institutions to engage with cryptocurrencies with confidence.”
The new service is currently only available for bitcoin transactions. Coincover will be expanding the service to cover other key cryptocurrencies in the months to come.
