New Revenue on the Bitcoin Investment Services Scene Provides Full Custody and Securities Services for Bitcoin Deposits The KNØX company launched its custody solution on September 24 and is noted for a complete insurance of the deposited funds.
CEO Alex Daskalov said:
“I have not seen any of the suppliers that offer 100% coverage. So far, I have not seen the properly insured custody. There is a lot of misinformation and, in many cases, we feel that other providers do not adequately protect investors. ”
Daskalov founded KNØX after realizing that in the case of institutions, holding private keys is not enough to secure the cryptocurrencies they hold.
“The second best thing you can do if you do not own the private keys is that you should have the right to have the full value of the insured assets”,
At launch, KNØX will be open to accredited individuals or institutions in Canada, the United States, the United Kingdom, the European Union and Asia. The company has accumulated $ 6.2 million in funding from Initialized, iNova and Fidelity Investments Canada, among others.
Insurance for Bitcoin deposits
Daskalov also explained that insurance plans can be tailored to the particular needs of each client. For example, while some clients may want 100 percent asset protection, others may only want 20, 40 or 60 percent protection. They will also receive different rates, depending on how much they want to keep custody and the details of their business model.
Daskalov believes that 100% secured bitcoin custody is the last piece to create a comfortable framework for institutions.
“There is a lot of capital sitting on the sidelines and waiting for the moment when the main risk of theft and loss is canceled”,
Once this problem is resolved, those cautious players will finally be able to enter the market.
“What we hear from institutional clients who have joined us is that they have already become accustomed to volatility. The only obstacle left is to ensure that their funds are not vulnerable to theft or loss. ”