April 23, 2024

Trustology launches hot wallet for institutional investors with access to DeFi

Blockchain startup Trustology, founded by former bankers from UBS, BNY Mellon and Bank of America, has released a hot wallet forstorage of crypto assets of institutional investors.

The first version of TrustVault wallet looked likeA simple cryptocurrency application for your phone. At the same time, the user's personal keys were stored in it in clusters of hardware security modules (HSMs) managed by Trustology, and the verification processes were distributed among secure data centers. The new version of the wallet works in the browser and is compatible with MetaMask.

To encourage institutional investors to enterinto the decentralized finance (DeFi) industry and start using decentralized exchanges, issuing stablecoins through MakerDAO or lending and borrowing cryptocurrencies through Compound Finance, Trustology has combined the browser with various decentralized applications on Ethereum.

“Using blockchain, you can create a newa class of assets with different life cycles and service operations for several hours, creating new smart contracts, ”said Alex Batlin, CEO and founder of Trustology.

He believes that when there are hundreds of smart contractswith proprietary methods linking transactions to the blockchain, a scalability problem arises. Plug-ins for a web browser such as MetaMask give users the ability to sign transactions with a key inside the browser, dealing with only one user interface. But storing such keys in a browser is unsafe.

“Many wanted to add access to applicationsDeFi, but previously it was not possible to make large transfers, because it is too dangerous - the keys are in the browser and can be stolen. However, we found a solution. "Users get all the functionality of access to hundreds of decentralized applications - lending, exchanging, creating derivatives - but with full key protection, KYC, AML and multi-signatures."

According to Batlin, proof of conceptcorporate blockchains are another interesting area. For example, if Santander Bank issues a bond on Ethereum, MetaMask is usually used as part of the workflow and a web page is used to purchase the bond and sign transactions.

"As soon as the part with the proof of conceptfinished, they should think about how to carry out further processes in a safe way, ”said Batlin. “That's when things go awry. Now they need to think about a wallet, how to store keys and crypto assets, and this is damn hard work. ”

Custodial services for institutionalinvestors are increasingly appearing on the market. Last week, Fidelity Digital Asset Services (FDAS) announced the full launch of its cryptocurrency custody and trading services for qualified investors.