InVault, a Chinese blockchain startup is of the opinion that the elimination of human factor in the storage of Cryptocurrency could guarantee the security and safety of the digital assets. The Shanghai-based firm has announced plans to provide these services to Cryptocurrency exchanges. The new service will allow the exchanges to engage in other activities as the company oversights their assets. Most Crypto firms in China have devised creative methods that have enabled them to remain operational despite the ban on the virtual currencies in the country.
InVault Launches Cryptocurrency Custody Services
Kennedy Xu, a Chinese national, has founded a company that will provide Cryptocurrency Custody Services to exchanges in the country. According to the CEO of the Shanghai-based blockchain startup, the new service will be popular among virtual assets exchanges in the country, as it will eliminate the risk of holding their customers’ investments.
Cryptocurrency Exchanges Heavily Rely On Their Senior Managers
Xu says that most of the Cryptocurrency exchanges rely on human oversight when holding the digital assets. Senior managers remain crucial in the management of the virtual currencies ordered by their customers. The CEO argues that the current method gives the senior managers control over one’s money as it involves entrusting them with the Cryptocurrencies’ private keys.
A recent article on The South China Morning Post said that most Cryptocurrency exchanges view the new product as the best one when it comes to safe storage of the virtual currencies. Xu said that the Cryptocurrency custody services will eliminate the risk of holding larger amounts of the digital assets faced by the exchanges in China.
Xu also believes the new service will allow Cryptocurrency exchanges to engage in other activities such as matching the buyers and sellers of the virtual currencies as InVault takes care of the management and storage of the digital assets. Moreover, the Cryptocurrency industry will also be operating like the stock trading where the role of storing securities is given to a centralized depository and not the individual firm.
On the September 11, 2018, article, the news outlet said that InVault will launch the new product this week. Already, the company has revealed a Cryptocurrency exchange has approached them for storage of about a million ether tokens. The demand for this Cryptocurrency custody services is expected to increase in the coming weeks.
Cryptocurrency industry is still in the early stages of development and it’s interesting to see the introduction of more products. Such products are expected to boost stability in the sector as they provide benefits to both the Crypto firms and their customers.
Cryptocurrency Trade Thrives In China Despite The Crypto Ban
Despite China banning Cryptocurrency trade last year, more people remain active, thanks to technology. According to the South China Morning Post, most exchanges have adopted new domain names, moved to other countries, and registered their businesses as foreign. Retail investors, on the other hand, are now using Virtual Private Network (VPN) to hide their identities. This has made it difficult for the government to successfully eliminate the trade.