As the cryptocurrency market grows, users and authorities worry about losing digital assets. BitGo’s latest Coincover cooperation stems from these concerns.
Users have legitimate concerns about losing access to digital assets. Security and risk management are also becoming more crucial as the cryptocurrency sector develops, both for consumers and regulators. These well-founded worries are the reason BitGo is announcing its most recent partnership with Coincover.
By working with Coincover, a cryptocurrency insurance-backed technology that protects digital assets from hacks and human error, BitGo, the US-based provider of regulated custody, staking, and trading services, is now able to guarantee to its institutional users the ability to recover wallet data in the event of lost access.
With this most recent move by BitGo, data recovery for its clients is assured in the event that they lose access to their wallet keys because the recovery data is stored with the third-party custody provider.
This alliance aims to use the lessons acquired from recent incidents to establish an industry standard for digital asset safety given that the cryptocurrency market is becoming more and more, and alarmingly, synonymous with asset volatility and the idiom “capital at risk”.
In the end, BitGo’s clients will gain from this since they will have a better grasp of the security issues related to bitcoin wallets. In order to reduce the risks associated with the business having to make that decision on its own, Coincover will offer a dependable backup and recovery solution once the organization has determined what kind of wallet arrangement is ideal.
According to Oliver Cummings, strategic partnerships director at Coincover, “given how much deposit safety is front of mind right now, this agreement is one step ahead for holders of digital assets, as it attempts to create an industry standard of digital asset security.” This will assist educate BitGo’s customers on the security dangers associated with digital assets and foster trust to promote widespread adoption.
“There is never too much security,”
The collaboration between the two businesses dates back to 2019 with the introduction of Coincover’s Cryptocurrency Wills crypto-insurance product, thus this current announcement is not the first time it has occurred.
Four short years after the product’s launch, the creators are reiterating their commitment to setting a new bar for security in a sector that has historically been anything but secure. The platform encouraged the safe storage and secure access of cryptocurrencies and digital assets.
According to Gavin Kip, senior security product manager at BitGo, “Security has always been vital to us, but we are continually looking for ways to improve.”
“There can never be too much security. In order to include the option of storing backup keys with Coincover for all of BitGo’s coin offerings, we have upgraded our connection with Coincover,” he says.
In the event that we or one of our clients fail in some manner, their technology serves as a failsafe against crisis situations. That adds a crucial layer of security to our system and will help us keep our position as the greatest and safest location for storing digital assets, says Kip.