Fireblocks Tests Hybrid Storage Solution
Fireblocks is testing a hybrid custody solution that its clients can use to protect their assets even when transacting on crypto platforms. This tested platform will allow users to keep their crypto assets under surveillance even while trading on exchanges. Funds will be released from custody only when trades need to be closed. Among the project partners are Huobi and Deribit.
Stephen Richardson, Fireblocks Senior Vice President of Financial Markets, said the regulation could help customers minimize their exposure to crypto platforms. Richardson added that institutional investors have been cautious about holding crypto assets on exchanges following FTX’s collapse in November.
With this development, Fireblocks joins the list of companies that offer hybrid storage services. Institutional crypto custodians such as Copper and Fidelity Digital Assets also have such over-the-counter platforms as part of their suite of services. Binance Custody also has a similar product that allows customers to reflect their cold wallet holdings onto their trading accounts. In these services, assets remain secure and inseparable from custody platforms until transactions are concluded.
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