By TokenSoft recently announced that it would be launching what they’ve dubbed to be the first cold-storage service designed purely for security tokens.
The firm, who are also known for their work in helping other companies run legally-compliant token sales, as well as their recent investment in a broker-dealer, is set to launch a beta version of a wallet to all the current and future clients today.
Dubbed Knox (named after Fort Know where the US gold reserves are stored), it will allow businesses to maintain a multi-signature, self-custody storage platform for various digital assets and digital securities.
Mason Borda, TokenSoft co-founder stated:
“It provides the highest level of security when it comes to … storing digital securities, which [are] newer to the market. The digital asset industry’s been comfortable with storing [coins] for the last few years, digital securities are kind of new ground.”
What Are Digital Securities?
Unlike cryptocurrencies, digital securities are less decentralized. They also feature built-in restrictions for traders, while cryptocurrencies such as Bitcoin and Ethereum have no restrictions.
Furthermore, digital securities also come in the form of asset-backed tokens which can represent debt, real estate or equity.
Borda referred to the Knox wallet as “the first custody solution for digital securities,” explaining:
“I think it’s a key piece of infrastructure that the industry has ignored up until now, and this puts it on the map as a key piece of infrastructure that’s necessary to service digital securities.”
The Knox Wallet:
Upon launch, the Knox wallet will be able to store any RC-20, ERC-1404, DS-20 (Securitize), ST-20 (Polymath) or Harbor’s R tokens. In addition to this, it will also support Bitcoin and Ethereum, but Borda emphasised that the core focus would remain on digital securities as opposed to cryptocurrencies. Notably, these securities can be built upon the ethereum, stellar, R3 and Hyperledger blockchain platforms.
Borda stated:
“What we hear a lot is that it’s very easy to use and [investors] wish that they could also manage their bitcoin like this, and so that’s why we rolled in support for additional digital assets, though that’s not the focus for the product.”
Furthermore, the security features which Knox boasts are providing offline cold storage as well as enabling multiple owners to execute or authorise transactions and cryptographic authentication.
As some of you know, the Knox wallet was first developed back in 2017, and select customers had access to it over the past year. However, Tuesday’s release is what Borda is calling “production grade” despite the service remaining in Beta. Knox will be made available to the general populace in the coming months, but it has been noted that at this stage, there is no timeline for an official release just yet.
What are your thoughts on securities and cold storage wallets? Let us know by leaving a comment below.
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