SEBA Crypto, Loomis to Develop Cold Storage System

[Leonardo]

SEBA Crypto, a Swiss virtual asset bank project, has partnered with Sweden's Loomis, which is one of the largest cash-delivering firms worldwide, with the goal to establish a digital asset cold storage product. The companies will launch the custodian system after SEBA Crypto obtains a banking license, according to a press release from Thursday.

The new product will complement the Swiss company’s crypto services, which will target mainly institutional investors and corporations. SEBA Crypto will implement security solutions from Loomis' physical storing experience, while the Swedish firm will offer tokenization services with the help of SEBA as part of the agreement.

The companies did not reveal what technique they will use for the development of the custodian product. One of the leading cold storage solutions is the so-called vault service: breaking the digital currencies up into independent parts, which as separate fragments have no value, and then store them in vaults.

The Swiss project is currently in negotiations with Financial Market Supervisory Authority (FINMA) for obtaining an official permit. SEBA did not disclose information about the negotiations’ progress while FINMA has recently only confirmed the talks.

The virtual asset custody market has become very competitive, with several major cryptos and traditional financial players entering it. Most of the new projects are eyeing cold storage - a method of storing cryptocurrencies in devices without an internet connection. That system is considered to be more secure than hot storage, which is an easier target for hackers.

Last month, one of the Loomis' major competitors, British giant G4S, announced an offline vault digital currency custodian product in a bid to expand its client’s base out of cash transportation services.

Several other firms have also announced crypto storage systems, including Canada’s VersaBank, Goldman Sachs with its plan for custodian services to virtual asset funds, and the Coinbase storage platform for institutional players.

Source: https://cryptovest.com/news/seba-crypto-loomis-to-develop-cold-storage-system/