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Holding that controls the Bitcoin Market launches cryptocurrency custody service

Holding that controls the Bitcoin Market launches cryptocurrency custody service

2TM, the holding that controls the Exchange Mercado Bitcoin, announces the start of operations of Bitrust, qualified digital custodian. According to a statement sent to CriptoFácil, the objective is to bring institutional investors closer to digital assets.

The service is now active and ready for customers. At first, Bitrust will only carry out the custody of Bitcoins (BTC), but intends to extend the service to other cryptocurrencies . It is expected that more altcoins will be released in the first quarter of 2022.

Bitrust now offers the technological infrastructure for investors to store and access their portfolio in a blockchain environment, with strict security procedures.

State-of-the-art protection

To guarantee the reliability of operations, the BTCs are stored in equipment called HSM. Installed in data centers, HSMs have tier 3 minimum security, one of the most secure in the world.

Bitrust HSMs have biometric-controlled access and uninterrupted monitoring. According to 2TM, custody operations have a series of layers of protection, such as:

  • double-factor authentication to login to the portal;
  • approval of all withdrawal requests by at least two customer users;
  • one of the signatures uses ICP-Brasil, due to the semantic logic validation intelligence of each transaction.

Furthermore, there are security mechanisms that are executed by the operational team directly with the customer. None of the private keys that give access to cryptoactives are stored in the cloud, but in structures contracted by the company itself.

As explained by Paloma Sevilla, Head of Business Development at Bitrust, this ensures that cryptoactives are kept completely offline and protected from hackers.

“The activity of a qualified custody for these assets is essential to guarantee important elements in the security of the operation, such as ownership, existence, backing and segregation. Despite being already consolidated in more developed markets, in Brazil, exchanges are still the ones who end up meeting this demand, which were not created solely for this purpose”.

international standards

The custodian starts its operations with an international standard of information security. Seville explains that Bitrust is in the process of obtaining SOC (System Control and Organization) certification. This certification is being carried out by a big four , a group that brings together the auditing companies Delloitte, KPMG, PwC and EY.

In other words, the service will provide the highest standards of auditing and protection. Bitrust has tools that allow tracking of risky activities and unusual transactions, as well as the detection of portfolios that are under sanctions and restrictions.

To start operations, the custodian went after partners with knowledge of the market to support the day-to-day business. One of them is Kryptus, a Brazilian multinational of cybersecurity and encryption technology, which assumed the role of guaranteeing the security and transparency of Bitrust.

“Our proposal is to be a service provider that brings the best practices to the cryptoactive market. Our client has to feel secure in custody. Therefore, we are investing to mitigate all risks, including access made by hackers, social engineering or an operation linked to money laundering”, he says.

The custody service represents an excellent potential market, especially targeting institutional clients. As investments in BTC increase, these funds will need places to store their assets, as they cannot store them on their own.

Today, custody is one of the top growing revenues of exchanges and other platforms. The giant Coinbase, for example, reached the US$ 1.5 billion mark in assets under custody in 2019.

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