The French hardware wallet manufacturer Ledger has joined forces with a Hong Kong public trust company, Legacy Trust, to launch a cryptocurrency custody solution geared towards institutional investors.
In the era of QuadrigaCX’s private key debacle, the aftermath of the Mt.Gox hack and the Cryptopia hack, the need for security in the cryptocurrency world is heightened. This dominance of hacks and scams, coupled with the institutional fever heralding the crypto-world has led Ledger to partner with Legacy Trust to introduce a custody product.
Legacy Trust and Ledger will work in tandem to launch a custody solution that will specifically cater to OTC firms, cryptocurrency exchanges, and High Net Worth Individuals [HNIs]. Bitcoin [BTC], as well as ERC20 tokens, will be offered custody services through this partnership.
Vincent Chok, the CEO of Legacy Trust, stated:
“The combination of Ledger’s technological versatility in safekeeping digital assets with Legacy Trust’s regulatory standing provides a complete and permanent solution to the issue of custody in the digital asset space, that did not exist until now.”
Ledger’s vault key management solution will underpin the upcoming Legacy Trust custody solution. This integration both on the supply side, by the partnership with a well-known public trust company and on the demand side, through their institutional and HNI roll-out, will provide impetus to the decentralized currency market’s claim at becoming a mainstream industry.
Demetrios Skalkotos, the Global Head of Ledger Vaults, compares the crypto-custody and wallet solutions provided by companies like his as the “digital plumbing” necessary in the cryptocurrency industry. He further added that the custody solution is “very flexible”, given the needs of the clientele.
Legacy Trust veered into the cryptocurrency space, with the ICO-boom of 2017 when several companies began tokenizing to gain fund. Following the ICO growth, Legacy diversified its operations for traditional financial assets’ custody to incorporating virtual currencies.
Eric Larcheveque, the CEO of Ledger, stressed on the importance of the multi-signature feature of the Ledger wallets, which when incorporated with Legacy Trust provides customized custodial service. This will be socially useful given the varied needs of their institutional clients. Cold Wallets can have up to six signatures in order to disseminate the funds locked in.
Ledger and Legacy officials are not concerned with the growing competition in the crypto-custody space. Chok stated that the competition from the likes of Fidelity, Coinbase and the imminent Bakkt platform will help the industry become mainstream, while Skalkotos added that this competition “validates the space”.
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