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After a month-long invitation-only period, BANKEX Custody Service, a blockchain-based cryptocurrency storage solution with no minimum deposit limit, is now available to all users. Along with Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, BANKEX Custody Service will accept BKX and other ERC-20 tokens. Already patented by BANKEX, BANKEX Custody, the safest and the most customer-centric vault, combines the best aspects of blockchain with the services of traditional banks and has unparalleled security. Here’s how it works.
First, a problem: to quickly buy crypto, you have to use your debit or credit card. Then you say goodbye to all of the physical attributes you are accustomed to – there are no plastic cards or banknotes, and even scarier – there’s no customer service line. Users with unresolved questions typically find themselves on their own. If they use a private key, chances are they will never get their money back. Also, because of the way this decentralized world works, they can’t prove that they are who they say they are. This significantly hinders the integration of cryptocurrencies into daily life.
Bringing Banking-as-a-Service (BaaS) and Blockchain Together
The first step in BANKEX Custody is a KYC procedure. This stands for Know Your Customer, and the process entails exactly that – knowing the customer. Customers need to provide identifying information, just like at a bank. And then customers will benefit from features that, until now, only clients of fiat banks could enjoy.
As in online banking, if users forget their private keys or passwords, or if they damage their PCs, they don’t automatically lose their funds. So there’s no need to memorize cryptographic credentials or engrave them on metal. In Custody, customers use an account name, password, and 2-factor verification, like they’re used to.
Custody reduces error by only using human input where it is needed
At the same time, the database cannot be accessed or read by a human – everything is encrypted and handled within the machine environment. The server is removed from human interference and only BANKEX’s automated modules can access it.
Client records go into a 256-bit-encrypted database, with cloud backups on three continents. An automated module creates separate wallets for each cryptocurrency, generates a private key for each wallet, and writes these private keys to the above-mentioned database, all without human involvement.
The United States Patent and Trademark Office (USPTO) recently approved BANKEX’s application to patent Custody Service.
Secure storage and secure withdrawals
Custody uses a waterfall system, meaning each user won’t ultimately have a specific individual account. Instead, Custody provides users with addresses where crypto funds can be directed. Users are free to share this address to let other cryptoholders transfer assets to them. When there are funds on this address, we take it, amalgamate it with other addresses, thus making what we call a “crypto cell,” and once a certain funding amount is reached, we open another cell. This keeps the information about your personal crypto wallet private and makes the storage method even more secure, as the precise location of the final wallet where your crypto assets are kept in cold storage is fundamentally unknowable. The only thing any user has access to is the initial address that holds exclusively small amounts of crypto funds. In addition, in Custody, to hack a wallet, one needs to hack a series of keys kept in a Hardware Security Module (HSM). HSMs are exceptionally secure as they are usually separated from the rest of the network.
Users can withdraw small amounts quickly and never lose their crypto assets. But, while small withdrawals with unproblematic logins are approved automatically, large withdrawals, logins from strange locations, and other suspicious factors cause the withdrawal request to be flagged for human review.
Before assets can be moved out of Custody, they have to be transferred from cold storage to users’ Custody wallets.
A crypto saved is a crypto earned
In addition to the threats that BANKEX Custody handles, such as hackers, lost passwords, lost wallet keys, and physical damage to key-storage devices, users have to think about the long term. The untimely death of a crypto-holder who has not left any specific instructions for the distribution of his or her assets is an eventuality that has to be provisioned for.
Probate issues can be complicated and often depend on local legislation. BANKEX Custody Service is already developing practical solutions to manage intestate legacy accounts. User agreements with Custody concierge services will soon include default dispersal agreements that are legally binding for probate courts in all jurisdictions.
Buy BKX and store your crypto for free
BANKEX Custody Service is not only differentiated from its competitors thanks to its security and lack of a minimum storage amount; it also doesn’t have any entry or withdrawal fees. The only commission users pay is limited to no more than 0.2 percent of the total value of stored cryptocurrencies per month. In addition, this commission can be paid using the cryptocurrency corresponding to the currency stored – if a user is storing Ether, the commission can be paid in Ether.
The BKX utility token will be a method of paying fees in BANKEX Custody. It will also enable users to receive discounts that can reach 100%. All a user needs to do to get the discount is to store part of his or her savings in BKX.
The BKX utility token is used as payment in the BANKEX Proof-of-Asset Protocol ecosystem. This ecosystem includes a native Tokenization Engine, KYC Adapter, Security Token Exchange, Trust Service, Smart Justice and Custody Service.
Other enterprises are already integrating BANKEX technology to migrate their business to the blockchain. MovieCoin, a blockchain-based platform, has already applied the BANKEX Proof-of-Asset Protocol to transform the financing of major motion pictures, television, and other entertainment media. MovieCoin Smart Fund Tokens will be the first security tokens to be accepted by BANKEX Custody.
Making blockchain client-oriented
Management: BANKEX offers a friendly and easy-to-use interface so clients can manage their assets easily and intuitively. Clients can make deposits or withdrawals, check their balance, and view their transaction history at any time.
Accessibility: BANKEX provides 24/7 access, guaranteed. Clients will be able to withdraw their assets at any time without fees.
Support: BANKEX offers unprecedented support to assist clients with the management of their funds. BANKEX provides expert live chat customer service every step of the way to help clients resolve problems.
BANKEX is a global top-20 fintech company developing the Proof-of-Asset Protocol to bring Banking-as-a-Service (BaaS) product modules and blockchain together to enable digitization, tokenization, and exchange of assets for the full development of a tokenized global ecosystem. Leading BANKEX technologies include the Proof-of-Asset Protocol for tokenization, Plasma Protocol, BANKEX Scan, Smart Justice, Trust Service, Pay, Bounty Service, and the Solidity Floating Point Library.
For more information, please visit bankex.com
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For more information on this and other press release topics, contact
BANKEX Head of PR Maria Zvyagintseva, e-mail: [email protected]