Xapo is storing about 7% of the world’s total Bitcoin supply in highly secured vaults. The Bitcoin is approximately valued around $10 billion.
Xapo is a storage company that stores Bitcoin, through a combination of a cold storage vault and a bitcoin-based debit card. The company is based in Hong Kong. The vault has blast-proof doors and corridors of reinforced concrete, encrypted computer servers.
The major principle of owning Bitcoin is to keep the private key a secret, the code allows a customer to spend his/her coins. But due to advancements in modern technology, many thieves can now get a hold of the private key and use the cryptocurrency. Even if the keys are in cold storage, hackers often set traps on computers and get access to them the moment they are online. The critics have questioned the safe-keeping of the cryptocurrency.
Xapo’s solution is to bury the cold storage device inside of a mountain and put it in a safe, highly secured vault, with a layer of electronic safeguards. The company stated that it would initially verify the client’s information and confirm his/her request. The retrieving of the Bitcoin from the vault will take around 2 days. The company will then manually sign the transactions with private keys from multiple vault locations.
The company has vaults in 5 continents. The company is also known for converting a decommissioned Swiss army bunker to a Bitcoin storage facility. The vault has $10 billion worth of Bitcoin. The company also offers customers a trading platform to buy and sell Bitcoin and has created the first Bitcoin debit card to spend.
Light a Reddit user says:
“This is awesome. A custodian option(s) are what is needed for Institutions to get involved in crypto.”
Rogers a Twitter user says:
“It’s a subject we discuss a lot, and we believe Bitcoin won’t reach the mainstream if people have to hold their own private keys, It’s a pretty high hurdle technically to be your own bank with lots of security”
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