Quantstamp audited BitGo’s Ethereum multisignature wallets. BitGo enables businesses to acquire blockchain-powered digital assets and use innovative financial applications by providing secure blockchain infrastructure as a service. All BitGo clients using Ethereum multisignature wallets will benefit from the security services provided by Quantstamp.
The Mainstream is Adopting Digital Assets
Traditional finance institutions are starting to take digital assets seriously and are steadily allocating digital assets in their portfolios. Recently, major companies started to acquire bitcoin:
- MicroStrategy has acquired over 90,000 BTC currently valued at over 5 billion USD (as of March 30th, 2021) and continues to make regular purchases of bitcoin
- Earlier this year, Tesla purchased 1.5 billion USD worth of BTC
- Square acquired over 3,300 BTC currently valued at over 190 million USD
- Meitu, a Hong Kong listed software company, acquired 30,000 ETH and approximately 765 BTC at a combined value of over 90 million USD
Meitu marked one of the first major purchases of ether.
Quantstamp anticipates that businesses and traditional finance companies will continue buying BTC and ETH, and will eventually explore DeFi governance tokens and DeFi yield earning opportunities.
Michael Saylor, Founder and CEO of MicroStrategy, started the trend of companies acquiring large amounts of BTC. He frequently shares his opinions on Bitcoin on Twitter.
Why Institutions Need Solutions Provided by BitGo
Companies like BitGo are facilitating the onboarding of institutional players by providing secure, insured, and regulated custody solutions. BitGo’s services allow institutions to confidently acquire, manage, and earn yield on digital assets. The benefits of BitGo services includes, but is not limited to:
- Insurance for up to 100 million USD worth of assets, including options for clients to purchase additional coverage
- Proactive compliance with a number of jurisdictions including the US, Japan, Switzerland, and Germany
- Tax solutions to simplify yearly reporting
- Self-custody solutions to provide clients with autonomy over their funds
- High levels of liquidity when purchasing assets
Multisignature wallets are blockchain wallets that allow a group of people to jointly manage digital assets. These multisignature wallets can be programmed to manage funds in a number of ways. For instance, a married couple may create a multisignature wallet that allows assets to be moved using a single signature from either one of their respective private keys.
Companies that manage their own digital assets often utilize a multisignature wallet to enhance the security of their funds. If company funds are held by a regular digital wallet, they risk the possibility that the authorized key holder will run away with funds or accidentally lose the funds by misplacing the company’s private key. In order to mitigate these risks, a company can create a multisignature wallet that requires transactions to be signed by 3 out of 5 authorized key holders.
Mainstream Adoption is Happening Now
Only 3 months ago (Jan 2021), large institutions were curious about the potential of blockchain technology, but remained on the sidelines due to security concerns, lack of insured custody solutions, and lack of regulatory clarity. Traditional investors and institutions are starting to understand the potential of digital assets and recognize that infrastructure is now in place to allow them to safely allocate BTC, ETH, and other digital assets into their portfolios.
Since our inception, Quantstamp has led the way in meeting the evolving needs of the blockchain space. Originally, our work focused on securing smart contracts, but has since expanded to include providing services to digital asset custodians and securing Layer 1 protocols like Ethereum 2.0, DeFi protocols like Maker, and NFTs like Axie Infinity and Illuvium. We look forward to continuing to work with digital asset custodians to provide them with security services for their current and future clients.