During an interview with CNR at the World Blockchain forum, Sean Walsh revealed that HyperBlock’s off-shoot crypto-custody solution, HyperVault, is already signing up customers, and will launch to the public very soon.
Sean Walsh, the CEO of large-scale US-based crypto-mining concern HyperBlock, has said that the company’s new HyperVault service, a fully insured custodial solution for cryptocurrency is ready to go live in “about four weeks”.
It is another diversification for the company under the Hyper- banner, to go with the existing HyperMines (mining), HyperCloud (Virtual mining), HyperTrade (OTC trading) and HyperLabs (R&D) set-ups.
“It’s a unique product,” Walsh told us, “Institutional investors above a certain size are, in most jurisdictions around the world, required by law to have a custodian hold their assets for them. Without insurance, though, they just can’t. They aren’t going to put their money in. The regulatory environment doesn’t really support going with an uninsured custodial service.”
He described demand for HyperVault as “massive”, adding: “the inquiries that we’ve received, from the first few people that we’ve whispered the story to, is two times our total insurance coverage. Out of the gate will have $400-$500 million.”
“There are institutional buyers that, as HyperTrade, I’m brokering transactions for with an order size of 100,000 coins BTC. Once they buy them, they’re going to need some place to hold them.”
“The customers are already lined up, and they’re already ready to go and then will be officially launched and transferring the coins in a matter of weeks from now.”
While Walsh admitted that HyperVault is “not alone,” in working towards such a service, he thinks “we’re in a pretty unique position based on our North American location and our connections in the industry.
Insurance of crypto-assets has become an increasingly large concern over the course of 2018, and has been seen to be a vital element to institutional adoption as, in the light of the many hacks unregulated exchanges have suffered during the past year, the risk of losing assets was deemed to be high.
Indeed, one of the talking points of the recent announcement of the NYSE-supported Bakkt, was its offer of warehousing – possibly through a third party, and not before November. Indeed, part of Goldman Sachs’ reasoning for postponing plans to begin crypto trading, was that it needed to get its custodial solution up and running first.
You will be able to read our full interview with Walsh in the next day or so.