Prosegur Crypto announced the creation of the first bunker for the custody of digital assets, which consists of a physically and digitally inaccessible environment – a globally unique security approach to the storage and comprehensive management of digital assets.
In collaboration with the cybersecurity company GK8, Prosegur Crypto brings together all the infrastructure, facilities, technologies and security protocols necessary to minimize all identified risk areas in the chain of custody of digital assets.
The solution is composed of the most modern cybersecurity systems, provided by the patented GK8 technology, and with the highest level of physical protocol infrastructures from Prosegur. It is based on a “360° Inaccessibility” approach, which incorporates more than 100 protection measures in six integrated security layers, which prevents any possibility of physical or cyber attack.
This bunker consists of an isolated environment located within one of the 550 safes that Prosegur has globally for its cash transport operations. From these vaults, the company protects and manages more than 400 billion euros in customer funds annually.
The Prosegur Crypto bunker includes several security measures in a military-grade protective environment. Closed-circuit cameras, biometric access, controlled secure rooms, as well as permanent monitoring by armed teams in all facilities, are combined with firewalls specially designed to keep the installation completely isolated from any external communication.
The HSM (Hardware Security Module, a device that generates, stores and protects cryptographic keys) is housed in a military-protected briefcase inside the high-security vault. This vault is only accessible to a limited number of individuals who manage assets manually and offline. Employees have restricted access to the information they handle to avoid any risk of internal theft and work in a secure facility, where there is no danger of physical attack, copying or theft of systems or passwords. In the event of an unauthorized attempt to access the HSM, its content will be permanently deleted. Immediately, a recovery plan is activated, including a protocol for the regeneration of private keys through seeds allocated in several other vaults.
The module connects to an MPC (Multi-party Computation) system that features a fast signing process on a highly advanced computer network and generates transactions on the blockchain no direct Internet connectivity. This minimizes the possibility of fraudulent access and eliminates any potential vector for cyber attacks. They are patented system features and represent a highly differentiated offering in the market.
For Raimundo Castilla, CEO of Prosegur Crypto, “O crypt bunker it offers a new dimension of security in the custody of cryptographic assets and is, without a doubt, one of the most innovative and secure solutions in the world, based on the concept of inaccessibility. This physical-digital mix provides a solution to the real problems faced by many operators in the cryptographic ecosystem who, as their funds grow and become aware of vulnerabilities or insufficient capabilities, look for solutions with the highest level of security and confidence possible.”
“By combining the first cold room with gap of the world’s air, which offers the ability to execute transactions from offline blockchain with one of the largest custody providers in the world in the field of physical security for traditional banks, the result is a complete and comprehensive solution that addresses a market in growing demand for protection of digital assets”, says Lior Lamesh, CEO and co-founder of GK8. “The demand for a secure encryption service is fueled by the rising value of digital assets as well as global regulation authorizing the use of encryption by traditional financial institutions. At the same time, incidents of hackers are becoming more frequent and sophisticated, outpacing existing storage solutions and emphasizing the need for escrow services that keep digital assets out of the reach of consumers. hackers”.
A third-party solution needed to increase and underestimate physical threats
In 2020, more than 1.9 billion dollars were lost as a result of hacks, theft, fraud and misappropriation, a risk that is growing at the same rate as Bitcoin and other cryptocurrencies are increasing in value. This scenario unwittingly positions cryptocurrency platforms and institutional investors with custody as targets for any attacker who, also under threat of violence, wants to seize these funds.
In this context, the responsibility to create a safe space for the protection of keys, systems, people and management processes is proving to be a real need for many institutional operators. Combating threats related to the protection of cryptoactives implies an enormous effort in terms of technical, human and financial resources directed towards security, without this being, for the majority, the center of their activity.
The introduction of experts like Prosegur Crypto offers many operators in the institutional cryptoactive market access to a first-class security and service model, without having to assume the cost and responsibility of implementing and maintaining it.
Prosegur Crypto’s escrow service model is governed by the KYC regulatory compliance processes (acronym for “know your client”, know your customer) and PML (Money Laundering Prevention). Furthermore, it includes access to a functional and customizable asset management platform in terms of limits and approval hierarchy and facilitates OTC trading (over-the-counter) and DeFi services (decentralized finance). It also offers the possibility of directly insuring the funds in custody with a first-rate insurance company. Finally, the platform supports a wide range of cryptocurrencies and tokens like Bitcoin, Ethereum and Ripple, among others, with new protocols that are progressively integrated.