Blockchain solutions have been missing an essential feature – the custodian one. Now, InVault, a Hong Kong-based cryptocurrency custodian service company, has recently launched after the country put new regulations valid for crypto exchanges and fund managers, requiring both to properly implement custodian solutions to their offerings and protect the virtual assets of their clients.
What InVault does is protect the digital coins by storing the private key of the users in a physical vault. Digital private keys are known to be safe, reports of hacked or stolen keys have also been present. To better service the growing need of safeguarding private keys, InVault taps into the large crypto market in Hong Kong.
Since custody solutions are yet to be implemented and imposed by governments around the world as requirements for companies, the need for such blockchain custody service solutions will grow with time. In addition to the major exchange hacks that have occurred in the past, including the Coincheck hack that caused a $533 million crypto value loss and the Bithumb hack that wiped off $31 million of digital coins, there have been many reports of crypto exchanges’ personnel hacking and stealing clients’ data and digital assets.
Rising demand for custody solutions will come from both institutional and retail investors. The CEO and founder of InVault commented that the biggest opportunities for development will come from Singapore and Hong Kong. With both cities at the forefront of fintech and blockchain revolution, need for custodian solutions will grow over time.