Noble Bitcoin is a leading provider of cryptocurrency individual retirement accounts (IRAs) and they believe that they have just came up with a service that could encourage more institutional investors to jump into the crypto scene: Crypto insurance! Specifically, cold storage insurance.
Noble Alternative Investments CEO Charles Thorngren said:
“The current cryptocurrency exchanges and companies that make up the landscape provide no insurance, no location, and often no support, this is the piece of ‘service’ that is missing in the financial services aspect of cryptocurrencies.”
Noble Bitcoin’s service will be the first of its kind. It will be available to Noble Bitcoin clients and will require the assets to be held in the International Depository Services (IDS) Group’s Texas depository.
Simply put, hot storage refers to your online/electronic crypto storage like digital wallets. Cold storage refers to your offline crypto storage like a hardware or paper wallet. The cryptocurrencies in Noble Bitcoin will be held in a cold storage within a vault in the IDS Texas depository.
Hot wallets have been proven to be vulnerable to online attacks from hackers. That’s why investors are advised to keep most of their crypto in hardware wallets. However, even then, they are not immune to security threats.
Given this, offering cold storage insurance may attract more institutional investors–and just investors in general–towards cryptocurrency. Thorngren hopes that this move can also encourage crypto companies, as well:
“We saw an opportunity to change the tide of uncertainty amongst investors by offering them a service that was absent from the market–a secure way to invest in cryptocurrencies. We hope that by leading by example, we can encourage other cryptocurrency providers to offer greater transparency and take more responsibility for the services they are providing.”
The exact launch date of the service is yet to be announced.
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