In the growing wave of demand for new digital currency, G4S has come to be party to the burgeoning market. The U.K.-based multinational security services company has unveiled a new service, which will offer a cryptocurrency custody solution. The company previously branded as Group 4 Securicor is the latest in the business of offline storage for Cryptocurrencies. Many other security firms have taken up similar roles in the cryptocurrency industry.
The looming lack of secure storage options
In the recent past, the crypto sector has been awash with market manipulators. This is according to the senior risk analyst at G4S’s risk consulting division, Dominic MacIver. He says that financial systems are under attacks by robbers and scammers. The lack of a secure storage system for cryptocurrencies has raised massive concerns among investors. In the first half of this year alone, close to $1.1 billion worth of cryptocurrency has been lost.
However, G4S wants to help in protecting cryptocurrency assets from criminals. Besides, several cryptocurrency exchanges have approached the company for the provision of security solutions in any case. A statement from Maclver on the matter reads, “Our innovative security solution helps protect against some of those threats by taking the assets offline and storing them in high-security vaults.”
The crypto custody segment has begun to flourish recently
It is clear that the lack of trusted custody solutions is one of the main barriers the industry is facing. This in return prevents institutional cash from getting into the cryptocurrency market. This, however, has led to the flourishing of the crypto custody segment. Many more firms are exploring the opportunity of the untapped market.
Other institutions on the path of providing similar services include US investment giant Fidelity, Goldman Sachs, and JPMorgan Chase among others.