On August 8th 2019, Prime Trust announced a partnership with Fireblocks. The agreement will allow Prime Trust to utilize unique technology developed by Fireblocks, to bring an added layer of security to the custody of digital assets.
The Prime Trust – Fireblocks Partnership Explained
Digital asset custody firm Prime Trust is continuing to develop its solution to protect digital assets from hacks and theft.
They’ve now partnered with Fidelity-backed security firm Fireblocks. The deal makes Prime Trust the first U.S.-based custodian to secure digital assets with Fireblocks’ multiparty computation (MPC) and chip isolation technology (SGX).
Over the last year and a half, an estimated $3 billion worth of digital assets have been stolen as a result of exchange hacks, insider fraud, and human error.
The new partnership adds an extra layer of protection to the digital assets held in custody by Prime Trust.
According to Prime Trust,
“Fireblocks’ technology provides a ‘secure highway’ for crypto that eliminates the theft of private keys or compromise of credential/API keys and deposit addresses. The firm uses multiparty computation (MPC) and patent-pending chip isolation technology (SGX) to secure digital asset transactions from potential hacks and human error.”
Fireblocks CEO Michael Shaulov says,
“Prime Trust is one of the most recognized names in digital asset custody, and we share a similar understanding of the critical role that security and regulation will play in the adoption of crypto by institutional players.”
Digital Asset Custody and Security Tokens Explained
Custody is an important domain in perhaps the most regulated digital asset type: security tokens.
In the U.S., the Securities and Exchange Commission (SEC) has launched investigations involving cryptocurrency custody solutions.
How a highly regulated real-world asset in tokenized form— such as equity, real estate, an investment fund, or even fine art— is safely and compliantly stored, is crucial to the longevity of the security token industry.
In addition to Prime Trust, custody solutions in the security token space include Coinbase Custody, BitGo, and others.
What do you think of Prime Trust leveraging the technology provided by Fireblocks? Let us know what you think in the comments section below.
Image courtesy of Prime Trust.