Coincover, a provider of protection and insurance for digital assets, has announced the launch of a new service called Protected Co-Signing, which aims to reduce the risk of fraud or hacking in digital asset transactions. The service screens transactions for potential risks and is being offered to all custody platforms that use key material distributed between multiple entities to sign transactions. Onramp, a bitcoin asset-management platform, is the first platform to use this new security protection.
According to Alex Saleh, Head of Partnerships at Coincover, Protected Co-Signing is the next step in making cryptocurrencies safer to hold and transact. The service provides an extra layer of protection to instill greater trust in digital assets at the institutional level. Despite the increasing usage of Bitcoin, the risk of custodial problems and losses due to fraud or hacking is still higher in the crypto space compared to traditional fiat transactions. Coincover cites data from Chainalaysis showing that $24.2 billion of crypto was lost to illicit addresses in 2023, with ransomware being a growing concern.
In collaboration with Safe and Sygnum Bank, Coincover has launched the Safe Recovery Hub, a service that offers crypto recovery options for individuals who have lost access to their assets. Coincover, founded in 2018 and backed by fintech and blockchain investors, works with leading institutions such as Fireblocks, BitGo, and Ledger to protect against theft, hacking, and human error. The company monitors wallets and transactions, sending alerts for any suspicious activity that may indicate a potential risk.
The launch of Protected Co-Signing by Coincover represents a significant advancement in the security of digital asset transactions, providing a safety net for institutions engaging with cryptocurrencies. By offering additional protection against fraud, hacking, and other risks, Coincover aims to instill confidence in its customers and the broader industry. As the crypto space continues to evolve, the need for robust security measures becomes increasingly important to prevent losses and ensure the safe storage and transfer of digital assets.
With the rise of ransomware attacks and other forms of crypto crime, the importance of secure custody solutions cannot be overstated. Coincover’s collaboration with industry partners and the launch of services like Protected Co-Signing demonstrate a commitment to enhancing security standards in the digital asset space. By leveraging technology and industry expertise, Coincover is at the forefront of protecting institutions and individuals from the risks associated with holding and transacting in cryptocurrencies.
As the adoption of digital assets grows, the need for reliable and secure custody solutions becomes paramount. Coincover’s efforts to address the challenges of fraud, hacking, and other risks in the crypto space reflect a proactive approach to enhancing security measures. By providing a comprehensive range of services and working with industry partners to strengthen security protocols, Coincover is paving the way for a more secure and trustworthy ecosystem for digital asset transactions.
