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Spanish security company founded in 1976 launches bitcoin custody service

The Spanish security company, Prosegur, announced this Wednesday, November 18, the launch of a custody and management service for bitcoin and other cryptocurrencies, which it has called Prosegur Crypto. It is a service aimed at institutional clients that manage or invest in digital assets, Prosegur said in a statement sent to CriptoNoticias.

Prosegur, which has been working since 1976 in various security areas including physical security, surveillance, alarms, cash management and cybersecurity platforms, will offer its clients the possibility of storing bitcoin and other cryptocurrencies and managing them through a mobile application, the release.

«Our platform satisfies a real and urgent need that exists today in the market. With this unique proposal, we offer a comprehensive and reliable custody solution with the level of protection and demand demanded by companies and institutions ”, said the CEO of Prosegur Crypto, Raimundo Castilla.

The Prosegur Crypto storage and management system allows executing the digital asset management process, including sending transactions to the blockchain, without direct connection to the Internet, according to the statement from the security company.

Increase in cyberattacks encourages bitcoin custody services

In just one year, according to Prosegur, cyberattacks on blockchain-based assets have quadrupled, especially in the DeFi sector. “If losses were estimated at $ 1 billion in 2018, in 2019 they reached $ 4.6 billion, making the security of digital assets even more critical,” says the security company.

Castilla points out that organizations that are operating in the cryptocurrency industry are growing at an intense rate. “However, few institutional custodians are capable of providing an adequate level of protection. Prosegur Crypto aims to lead this market as the safest and most reliable partner for institutional investors ”, says the executive.

The manager emphasizes that “Prosegur is the first global security company to enter the crypto-asset market and that it offers a comprehensive model and service, including one of the broadest insurance policies in the digital market.”

There is a wide variety of cryptocurrency storage and custody systems, mainly focused on institutional investors. Among those with the majority of market share are BitGo, Coinbase Custody, Anchorage, Kingdom Trust, Gemini Custody, and OSL.

Even though, as reported by CriptoNoticias, there has been an increase in users who accumulate bitcoin in their own wallets, up to 50% of the bitcoins could be stored in custody platforms. For the renowned Bitcoin maximalist Jameson Lopp, this situation “could cause systemic risks.”