IBM Makes a Move into Cryptocurrency Custody
By Mark Lemon – Cryptocurrency Professional
New York-based IBM have partnered with investment firm Shuttle Holdings to launch the beta version of its custody solution for storing cryptocurrency assets built upon IBM’s private cloud. Both Shuttle and IBM won’t be holding the coins and tokens but provide the infrastructure and tools for others to use. Institutions may soon have a secure solution for buying crypto and subsequently store using this system.
IBM and Shuttle are targeting a launch date in late March for institutions to use their infrastructure from banks, custodians, funds, exchanges, high net worth investors and brokerages like BC Bitcoin. The service will not go live to the public initially as Shuttle wish to test its solutions with clients able to handle the cryptocurrency stress.
IBM’s cloud infrastructure provides businesses with some of the most secure, fastest and lowest latency technology. This solution using IBM’s cloud is not the conventional storage users would expect from a custodian. Institutions that buy and sell cryptocurrency and store using this infrastructure will not be secured through cold storage.
This custodian solution will store private keys in the cloud under many layers of industrial-grade encryption. Though the industry does not view a solution like this as secure as cold storage, IBM has some of the best security systems in the world. Shuttle have also described their tools as ‘just as secure, if not more secure’ than a normal cold wallet solution.
Neither Shuttle or IBM have elaborated which assets the infrastructure will support, and the system could be universal. A universal solution will encourage more that buy and sell cryptocurrency to use as all their assets can be in one place if required.
This custodian has its advantages as clients will have access to their stored assets almost instantly. Many of the targeted institution will regularly buy and sell Bitcoin which requires a solution with faster access than cold storage, otherwise a hot wallet which is less secure must be used.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards