IBM teams up with Shuttle Holdings to launch a custody solution

NY-based investment firm Shuttle Holdings is planning to roll out a beta version of its crypto asset storage solutions, CoinDesk reports. The new custody solution utilises tools developed by IBM, such as private cloud and encryption technologies. It is not yet available to the public—only a small number of clients have gotten access to the limited service. However, according to IBM, the list of potential users is vast as the service may be attractive to anyone interested in self-custody. 

Unlike most similar tools, Shuttle’s custody solution does not use cold storage. According to Shuttle’s chief investment officer Brad Chun, companies want their assets to be readily accessible; transactions with the use of cold-stored funds require more time since the assets are offline. Shuttle opts for hardware security module, which is “just as secure, if not more secure” than cold storage, said Chun.

“There are always trade-offs between security and efficiency, but we do not utilize a traditional cold storage system,” Chun said. “Instead, we keep keys at rest encrypted in multiple layers as data blobs so that an organization can store these backups using their pre-existing disaster recovery and backup processes and media.”