Blockchain NewsCryptocurrency NewsGlobal Crypto NewsLatest News

Grayscale Reveals What Threatens Clients’ Security

It’s been just revealed that the crypto asset management giant Grayscale says it doesn’t want to provide precise on-chain proof of its reserves because of security risks. It’s also been revealed that since revelations that former crypto exchange FTX was mishandling its customer funds, other exchanges and firms have moved to provide proof-of-reserves. They have done this in order to assure clients of solvency.

Grayscale will not release cryptographic proof of its reserves

In a Twitter thread, Grayscale said that all of its digital assets that underlie its products are stored under the custody of Coinbase Custody Trust Company. It’s also worth noting the fact that for security reasons, the firm won’t release cryptographic proof of its reserves.

Grayscale said the following:

“Coinbase frequently performs on-chain validation. Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.”

The crypto giant continued and said this:

“We know the preceding point, in particular, will be a disappointment to some, but panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.”

As the online publication the Daily Hodl notes, Grayscale says that it does not lend, trade or rehypothecate any of its digital assets. The same crypto giant also said that all of the BTC in its Bitcoin Trust are owned solely by the Trust.

We recommend that you check out the complete thread in order to learn more details about what Grayscale does involving clients’ funds.

Related posts
Cryptocurrency NewsGlobal Crypto NewsLatest News

Grayscale Reveals New Bitcoin and Crypto Infrastructure Investment Product

Bitcoin NewsCryptocurrency NewsGlobal Crypto NewsLatest News

Grayscale Hires Top Obama Lawyer Ahead Of Spot ETF Decision

Cryptocurrency News

Grayscale Reduces ETH and BTC Amount to Invest in Solana and Uniswap

Cryptocurrency News

Grayscale Announces Its Support For Cardano (ADA)

Send this to a friend