Coincover, a provider of protection and insurance for digital assets, has launched a new service called ‘Protected Co-Signing’ to help reduce the risk of fraud or hacking in digital asset transactions. This service screens transactions for potential risks and is being made available to all custody platforms that use key material distributed between multiple entities to sign transactions. The first platform to use this new security protection is Onramp, a bitcoin asset-management platform. The aim of this service is to provide an extra layer of protection in the event of issues such as misplaced private keys, fraud, or exchange hacks. Coincover is working towards encouraging greater trust in digital assets at the institutional level.
According to recent data from Chainalysis, the risk of custodial problems and losses due to fraud and hacking remains higher in digital asset transactions compared to traditional fiat transactions. Despite the rising usage of Bitcoin, the occurrence of crypto crime remains strong. In 2023, $24.2 billion of crypto was lost to illicit addresses. One area of illicit activity that saw growth in 2023 was ransomware attacks. To address these challenges, Coincover has partnered with Safe and Sygnum Bank to offer a curated suite of crypto recovery options through the “Safe Recovery Hub” service. This initiative aims to protect institutions and customers from theft, hacking, and human error.
Coincover, founded in 2018, is backed by leading fintech and blockchain investors. The company works with industry players like Fireblocks, BitGo, and Ledger to help institutions protect themselves and their customers from security threats. Their monitoring service tracks wallets and measures transactions and exposure levels. Whenever a transaction occurs, the service sends an alert to its system and uses an access token to query the transaction, checking it against its system and flagging any suspicious activity. This proactive approach aims to prevent potential security breaches and safeguard digital assets.
Protected Co-Signing from Coincover represents a significant development in enhancing the security measures surrounding digital asset transactions. By working with industry partners and leveraging key distribution technology, Coincover hopes to provide a safety net for institutions engaging with cryptocurrencies. The ultimate goal is to foster greater trust in digital assets at an institutional level and reduce the risk of losses due to fraud or hacking. As the crypto industry continues to evolve, innovations like Protected Co-Signing play a crucial role in addressing the ongoing challenges and risks associated with digital asset custody.
Coincover’s focus on providing comprehensive protection for digital assets reflects the growing need for enhanced security measures in the crypto space. With the prevalence of crypto crime and the potential for losses due to various factors, institutions and individuals alike are seeking more robust solutions to safeguard their investments. By offering services like Protected Co-Signing and collaborating with industry leaders, Coincover is positioning itself as a key player in the ongoing effort to secure digital assets and promote trust in the use of cryptocurrencies. As the landscape of digital asset custody continues to evolve, innovative solutions like those offered by Coincover will be essential in mitigating risks and ensuring the security of digital transactions.
