By
Temitope Olatunji
April 26th, 2024
The IBM Hyper Protect Offline Signing Orchestrator has been tapped by Ripple Labs-backed Metaco to provide secure crypto storage.
International Business Machines Corporation (NYSE: IBM), a leading software and consulting information technology company with much focus on cloud computing, has been working on its way to the web3 space through its vast infrastructure. Notably, IBM unveiled the Hyper Protect Offline Signing Orchestrator that allows crypto investors to transfer assets from their cold storage wallet seamlessly with utmost security. In a recent demonstration video, IBM showed how Bitcoin sender can automate the offline-signing process through the front end of the Hyper Offline Signing Orchestrator.
IBM’s Crypto Cold Storage at Work
The mainstream adoption of digital assets fueled by institutional investors has experienced notable hurdles, especially due to rogue actors masquerading as decentralized entities. Late last year, hundreds of institutional investors were rekt after the collapse of FTX and its sister investment firm Alameda Research. Many more were caught up in the bankruptcy of Celsius and Three Arrows Capital. As a result, the reputation of legacy crypto firms has significantly weakened and most institutional investors opted to build the necessary infrastructure including running validator nodes to ensure utmost security.
In a bid to fill the gap of a reputable web3 platform, IBM through its cold storage has attracted the attention of Ripple-backed Metaco, a Switzerland-based enterprise tech company providing digital assets operation. Moreover, Metaco operates in more than 20 different jurisdictions in Europe where regulatory scrutiny is heightened to protect investors from predatory practices.
“IBM’s confidential computing division has been a reliable partner throughout the years, and we are pleased to complement Metaco’s catalog of institutional cold storage solutions with the unique air-gapped cold storage that OSO enables, especially as cold storage requirements are increasingly being stipulated by regulators in markets such as Singapore, Hong Kong, and Japan,” Adrien Treccani, Metaco Chief Executive Officer, noted.
Notably, IBM intends to leverage its cloud computing infrastructure and expertise in developing secure crypto storage for institutional investors involved in high transaction volumes.
Market Implication
The venture into the Wibmeb3 industry by IBM gives it a fresh look from shareholders, which could significantly boost the bullish outlook. According to the latest stock market data, IBM stock has risen approximately 15 percent since January to trade around $161.39 on December 6, 2023. The $147.1 billion tech company could see a significant rise in revenue in the coming quarters as more enterprises adopt its crypto cold storage.
The entrance of IBM into the crypto space coincides with the ongoing Bitcoin-led bullish sentiments. According to our latest market data, Bitcoin price jumped to a fresh yearly high of around $44.5k on Tuesday. Meanwhile, on-chain data shows Bitcoin supply on centralized exchanges has continued to drop in the past months and is at its lowest level since 2017.