Fireblocks test the off-site cryptocurrency custody solution

It is reported that Fireblocks is trying out a hybrid custody solution, which can be used by its customers to protect their cryptocurrency even when trading on the exchange. The proposed platform is envisaged as an “off-site” service. The platform will enable customers to keep their encrypted assets when trading on the exchange. Only when the transaction needs to be settled, the funds will be removed from the custody platform. Huobi and Deribit have been added as partners of the project.

Interpretation of this information:

Fireblocks, the digital asset security platform, recently announced that it is testing a unique hybrid custody solution. The solution is designed to cater to the cryptocurrency traders’ need to safeguard their digital assets that they are trading on exchanges. The platform aims to be an “off-site” service, where customers can keep their encrypted assets in custody even while trading on an exchange. The platform will release the funds only when the transaction has to be settled.

The platform’s need arises from the fact that traders are always looking for ways to optimize their assets’ productivity while also being secure. It has been observed that traders move their assets from one wallet or custody solution to another, depending on the exchange they plan to use. This process of moving assets repeatedly incurs transaction fees, reduces the efficiency of assets, and exposes them to vulnerabilities. The Fireblocks new “off-site” custody solution eliminates these issues by keeping the assets in one location.

In addition to providing security, this custody solution aims to reduce the latency associated with asset transfers. This ensures that customers can trade their assets quickly and efficiently. The platform’s initial partners, Huobi and Deribit, are among the many exchanges that the platform aims to integrate with in the future.

This hybrid custody solution is a game-changer in the crypto industry, as it provides an innovative solution to address the concerns of traders. The design of the platform makes it easy and cost-effective for traders to keep their assets in one place, be secure, and have quick access to their assets when they need them. All these features are vital for traders who are always seeking ways to improve their trading efficiency and profit potential.