Ledger opens Ledger Vault early access program, providing unprecedented digital asset security to institutional investors
- Genesis Trading, Global Advisors, LCX, IronChain Capital, XBTO, and Smart Valor are participating in Ledger Vault early access program
- Institutional investors and platform providers, including hedge funds and family offices, working to develop Ledger Vault enterprise security platform
- Ledger Vault the only digital asset security solution that gives investors full control of their assets
New York, May 15 2018
A 6 strong group of leading digital asset investors, traders and platform providers today announced their participation in a new program to develop security and compliance solutions for digital assets. Having sold more than 1m+ Nano S hardware wallets for digital assets, cryptosecurity leader Ledger has created an early access program for the Ledger Vault, the first enterprise-grade security solution for digital assets.
With the ten largest digital assets alone reaching total combined market capitalisations of $300bn+, institutional investors are actively exploring ways to gain exposure to a rapidly emerging asset class. One in five finance firms are considering launching crypto trading and investment businesses in the coming year.
Despite a rapid rise in the number of specialist digital asset investment funds and operations, and the establishment of digital asset trading desks within traditional banks, investors currently lack the robust compliance frameworks and security tools to safeguard assets effectively. Currently, digital asset investors face a number of security and compliance challenges, from hack attempts to physical safety risks (e.g. kidnapping or assault) and non-compliant trading activity.
“The secure enterprise solution for custody of crypto assets such as Ledger Vault in combination with regulatory approval as the winning formula in the crypto space today and we are excited to be the first Financial Intermediary company to achieve this,” said Olga Feldmeier, CEO of SMART VALOR. The company is on the cusp of receiving the status of Financial Intermediary (AML-Licence) in Switzerland enabling it to provide custody service to third parties. “We are capitalizing on the regulatory solution previously achieved here in Switzerland to ensure that our customers have not only secure solutions, but also to ensure that we’re operating in a fully compliant environment,” said Feldmeier, who led the licensing process for Xapo, one of the largest Bitcoin custodians today.
While individual retail investors are able to secure digital assets with individual hardware wallets, these products lack core features required in an enterprise environment. Ledger Vault will protect institutional investors from the operational risks of trading digital assets, allowing, for the first time, asset managers and custodians to conveniently trade this new class of asset without compromising on security. Ledger’s Vault product enables:
- Asset security through HSMs (Hardware Security Modules)
- Support for multiple digital asset and currency types
- Multi-signature approvals, enabling compliance oversight of individual transactions with granular controls and approval options
- Rate limiting controls, providing compliance oversight of individual transaction and trading activity
This functionality is made possible by three core Vault components:
- A Hardware Security Module, or ‘HSM’, which secures a private master seed, used to authenticate individual keys used to operate the Vault on a day to day basis;
- An authentication system, utilizing multiple Ledger authenticators, with each device controlling one private transaction key. Combined, these devices authenticate, review and control transaction and trading activity;
- A software package, used by individual investors and traders to manage their transaction and trading activity
Ledger CEO Eric Larcheveque said:
“Ledger is a well-established security solution provider with over 1 million Nano S hardware wallets sold. The Ledger Vault, a secure hardware based key management solution for digital assets, is a natural expansion of our offering, tailored to address the challenges faced by the financial industry. We are bringing together a group of leading thinkers and businesses across the spectrum of digital asset investment and trading to test and develop the Ledger Vault, building a digital asset security solution built for and with enterprise customers.”
The Ledger Vault is the only digital asset security solution that gives investors full control of their assets. In coming months, Ledger will work alongside their partners at Genesis Trading, Global Advisors, LCX, IronChain Capital, XBTO, and Smart Valor to test and develop hardware and software security features for digital assets, before wider availability of the Ledger Vault to institutional investors later in 2018.
Genesis Trading CEO Michael Moro said:
“Ledger has been a terrific partner for Genesis Trading as our business has continued to grow in recent years. Ledger provides safe, secure technology solutions and we are excited to expand our relationship with the new Vault enterprise product.”
IronChain Capital CEO and Founder Jonathan Benassaya said:
“Digital asset custody is key for the success of this new asset class. Ledger’s Vault brings the flexibility and security level missing for a lot of digital asset managers. Additionally, the depth of the asset coverage opens up new opportunities in terms of product engineering. We are looking forward to a long term partnership!”
Background on partners
Ledger is a security solution provider for digital assets, operating in Paris, Vierzon and San Francisco. Ledger’s three stage mission is to secure digital assets for individuals, enterprises and machines. Ledger has grown in recent years into the clear leader in cryptocurrency hardware wallets, having sold 1m+ Nano S devices. As the business evolves into the second stage of its mission, Ledger has created the Vault, a security solution for enterprises.
Genesis Trading is a global leader and trusted partner in over-the-counter digital currency trading. A broker-dealer registered with the SEC and FINRA, Genesis is an industry pioneer and market maker that has facilitated billions of dollars in transactions with institutional investors since 2013.
Global Advisors (Holdings) Ltd (“GA”, “Global Advisors”) is an international investment house headquartered in Jersey. In 2014, GA launched the world’s first institutional-grade Bitcoin investment strategy (“GABI”). In December 2016, GABI became the first regulated bitcoin fund to be listed on any exchange worldwide when it was listed on The International Exchange (TISE). Global Advisors has a 19-year track record of managing client funds as a regulated investment manager, originally in the commodity markets and, since 2014, bitcoin. Via its shareholding in CoinShares (Holdings) Ltd, GA is also the majority owner of XBT Provider AB by CoinShares, the issuer of exchanged traded bitcoin and ether tracking products listed on Nasdaq Stockholm.
For further information about the group, visit www.globaladvisors.co.uk.
IronChain Capital is a next-generation digital asset investment firm that is singularly focused on providing both retail and institutional investors with easy and secure access to cryptocurrencies on a highly cost-effective and diversified basis. The firm offers a diverse suite of services, including brokerage accounts, investment products, portfolio management and trading solutions. The firm is headquartered in San Francisco, CA. For more details, please visit www.ironchaincapital.com.
SMART VALOR AG is a Swiss-based company building the first decentralized marketplace for tokenized alternative investments. Our mission is to enable frictionless, compliant and secure access to alternative digital assets and deploy blockchain technology to democratise access to wealth.
Founded in 2015, XBTO has rapidly evolved into a leading and diversified participant in digital asset markets. Their experienced team of financial and technology professionals develops trading software and conducts proprietary trading. They act as a liquidity provider on leading electronic platforms and OTC. XBTO is also an investor to many leading companies and advises accredited investors on crypto-related strategies. For more information, visit www.xbto.com