Security hardware and software maker Rambus has launched Vaultify Trade, a platform that offers “bank-grade” protection to cryptocurrency and blockchain assets.
It is hoped that the platform will enable banks, exchanges and investment portals to use blockchain tokens more securely when using and exchanging cryptocurrencies.
Timeline for Crypto
Blockchain’s distributed ledger technology continues to creep into myriad industries – from food supply chains to real estate – but its growing use means that there are also more opportunities for criminals.
“Crypto assets are on the verge of going mainstream, but many of today’s consumers find cryptocurrency to be inaccessible and confusing, and are concerned by high-profile hacks,” said Jerome Nadel, GM of Payments and CMO at Rambus.
Last month Zaif suffered a crypto-theft in which hackers stole close to 6,000 bitcoins worth around $29m. It is one of a long list of crypto crimes that has resulted in the theft of hundreds of millions of dollars of cryptocurrency.
“In order to accelerate adoption, consumers are seeking a secure, familiar way to access, trade, and own crypto assets through their trusted banking or trading apps,” said Nadel.
Vaultify Trade: Technology to prevent crypto heists
Rambus aims to address this problem by using multi-signature, bank-grade tokenisation technology.
Where normally a private key is required to access blockchain and crypto assets, Vaultify Trade replaces this with a non-sensitive token equivalent. On its own, this cannot be used to gain access if intercepted.
The platform also offers segregated wallets, a white-label app and SDK, which allows cryptocurrency traders to use their usual mobile banking apps.
“While cryptocurrencies represent significant opportunities, a major risk factor is that they are prone to theft, in large part due to the lack of strong security solutions for the blockchain,” said Jordan McKee, research director at technology industry analyst firm 451.
“This undermines consumer confidence and limits the ability for financial services companies to offer products that help comply with regulations and best practices. With additional trust and transparency, the potential for cryptocurrencies to transform financial services can be realised.”
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Rambus currently provides security solutions to more than 100 billion transactions in areas such as mobile payment and smart ticketing.
“Banks, exchanges and investment houses can now quickly incorporate blockchain technologies into their product portfolios, armed with the confidence that data, value and assets are secure,” said Nadel.