By
Tolu Ajiboye
February 23rd, 2024
Trust company Legacy Trust and hardware wallet maker Ledger will offer a new institutional-grade crypto custody solution called Ledger Vault.
It is a widely accepted opinion that one of the main conditions of the mass adoption of cryptocurrencies is reducing the gap that today exists between traditional institutional investors and the crypto industry.
Bearing this idea in mind, crypto hardware wallet manufacturer Ledger and Hong Kong-licensed public trust company Legacy Trust have entered in a partnership to provide a new bridge between traditional investing and the crypto world.
This recently baked bridge represents itself a new institutional-grade cryptocurrency custody solution.
Ledger Vault
According to the information provided by these two firms, the main idea of this new solution called Ledger Vault is to attract new flows of institutional money to digital assets.
The new product presented is a multi-authorization wallet management tool for digital assets. The peculiarity of this tool is its capacity to provide hardware security benefits as well as software ones.
With the help of this tool crypto exchanges, investment funds, as well as OTC desks, will have a possibility to use services of an independent qualified custodian and to apply the rules to transaction authorization individually for different accounts.
The physical closeness of all multi-signature participants will not be a must to conduct transactions for custodians which is said to facilitate and streamline this traditionally rather time-consuming process.
As it has been revealed by Legacy Trust, Ledger’s multi-signature cryptocurrency wallet management product Ledger Vault will help to increase the level of security and efficiency of its digital assets custodian services. These services will cover not only Bitcoin but Ethereum-based ERC-20 tokens as well which is a new feature for Legacy Trust.
In his comments on their new partnership and adding of ERC-20 custody services, Legacy Trust group CEO and founder Vincent Chok stated:
“There is huge interest in ERC-20 custody services and it’s only growing bigger. Every STO [security token offering] that is planning to take place will need to have custody for ERC-20 tokens.”
He highlighted a huge interest in this option from the side of their clients. “Since the beginning of 2019, we’ve basically received around five requests for ERC20 custody, per week,” he noted.
Ledger Vault’s global head Demetrios Skalkotos also believed that this partnership could bring a lot of benefits to different groups of market participants. He said that thanks to it investors will have “total control and peace of mind that their assets are secure, while not sacrificing convenience.”
New Crypto Custodian Services
Nevertheless, it’s not the first time when the community has heard about Ledger Vault solution. Its development was first disclosed more than a year ago, in January 2018. At that time it was said that the main target audience of the product would be institutional investors including banks and hedge funds.
While more and more institutional investors are entering the cryptocurrency sector, the growing number of traditional financial firms is starting to provide custody services as investors want to have secure storage for their assets.
For example, not so long ago it was announced that Swissquote, an online banking and trading group, was launching a crypto custody service. And G4S, a U.K.-based security services company, started to offer a similar option in October.