A crypto wallet says it ensures a higher level of security for its users by applying new custodian solutions and brings cryptocurrency to traditional payment methods.
Today, the security of cryptocurrency accounts is mostly ensured by private keys, conventionally utilized by wallets and cryptocurrency exchanges. However, such an approach to the protection of users’ digital assets harbors certain risks. The point is that private keys can easily be forgotten, lost when written on a paper, or stolen from a computer or mobile device in the course of a hacking attack. That’s why it is essential to apply custodian solutions to avoid potential risks of theft and fraudulent activities.
Swipe — a cryptocurrency wallet system, which comes in a form of both a digital multi-asset wallet and a Visa debit card — has announced the establishment of a strategic relationship with Coinbase to provide custody solutions for its clients. The company says that its users can expect their digital assets to be safe and secure because all the deposits made into the Swipe wallet app will be stored with Coinbase Custody.
User benefits from partnership
Coinbase Custody is a qualified third-party custodian licensed as a fiduciary under banking laws in the state of New York State. Swipe says it offers its clients an institutional-grade offline storage solution that has been used by Coinbase as a native custodian solution since 2012.
The company reports that Coinbase Custody was developed with the intention to address the unique challenges of storing crypto assets. Meanwhile, it operates similarly to traditional custodial services being overseen by the same regulators, held to the same capital requirements, and even audited in the same way as traditional financial custodians.
As hacking attacks in the cryptosphere are mostly irreversible, professional investors opt for storing their assets in the cold storage with insurance from a company with a strong reputation. That’s why, as Swipe emphasizes, the opportunity to store digital assets in its wallet system with Coinbase Custody will provide long-term stability and enhance the monetary security of the user’s financial assets.
As Swipe reports, the digital assets stored with Coinbase Custody will be segregated and held in a trust. The company also plans to utilize Coinbase for swift crypto-to-fiat conversions — whether the transactions are performed using the Swipe Card or Swipe Wallet application. This will give users instant access to payments in more than 20 supported cryptocurrencies at over 40 million locations worldwide, wherever Visa is accepted. Being able to easily spend crypto tokens — for example, on a cup of coffee — can be another big step toward mass adoption.