Prime Trust, a small U.S. financial institution that’s played a behind-the-scenes role in several dollar-backed cryptocurrencies, is entering the hotly competitive crypto custody business.
Prime Trust is a U.S based chartered, regulated financial institution that holds cash and non-cash assets such as stocks, bonds, tokens, real estate, and private ownership business interests.
And in July of this year, the financial institution quietly began offering cold storage for Bitcoin.
Prime Trust to offer one of a kind custody service
Prime Trust, a financial strap-up based in Nevada gained popularity in the crypto space for its back-office role in the so-called stablecoin (a token issued on Stellar’s blockchain) announced last month by IBM and startup Stronghold.
The Nevada based company has now announced that by next week that it can also handle custody for Ether and any token issued on the ethereum blockchain (ERC-20 standard).
The announcement was made by Prime Trust’s CEO & Chief Trust Officer Scott Purcell who claimed his company will be the first to offer custody for any ERC 20 tokens.
Purcell explained that his engineering team had to overcome a massive technical problem in order to offer cold storage for all ERC-20 tokens, describing the development as no small feat. Purcell said:
“We had had AN engineering breakthrough which now enables us to easily cold-storage any ERC-20 token (along with BTC and ETH, of course),”
By next week, his company will be able to offer cold storage for Ether and any ERC-20 token which means a lot for the small start-up which was launched about 2 years ago.
Purcell described this as “great in theory, impossible in practice due to various tweaks/nuances in each different token. That’s why nobody does this – nobody until now”
Prime Trust joins the ‘big league’
Offering such a service which is highly sought after by institutional investors could be a game-changer for Prime Trust which whose operations have been underground since its launch.
Most institutions have stayed away from offering cold storage for tokens, as a result of the difficulty level attached to the service.
In cold storage, cryptographic keys, which are like a long password and can be used to drain the money from a wallet, are kept offline, on a hardware device that’s typically locked away in a safe.
However, as Wall Street firms are beginning to venture into the crypto industry, several big players in financial services are beginning to explore offering this type of services.
Most notably is Northern Trust, Goldman Sachs, and Intercontinental Exchange (ICE), the parent of New York Stock Exchange, with crypto startups like Coinbase, BitGo and Ledger joining the list.
Although faced with a possible stiff opposition in its breakthrough service, Prime Trust is confident that they can outsmart its competitors.