Payment startup Uphold is collaborating with Ledger, a hardware provider, to boost its cryptocurrency storage’s security processes.
Ledger will offer new tools to Uphold through its Ledger Vault wing. This will allow Uphold to better defend its users’ funds from hacks and at the same time giving new user access controls.
According to a press release, Uphold will also apply a new “strong, multi-authorization governance model, ensuring there are no single points of failure in the management of customer funds.”
In addition, Uphold will also enable support for new ERC-20 based stablecoins and other “proxy assets.”
Demetrios Skalkotos, global head of Ledger Vault, said that what his company is offering is infrastructure, underscoring that Ledger Vault is just a technology partner and not a custodian.
“We’re trying to provide a technology infrastructure, both software security integrated with secure elements and hardware,” Skalkotos said.
Describing Uphold as a “security- and compliance-first kind of company,” Thieriot said that the firm had gone through a thorough search of hardware providers before finally partnering with Ledger.
“We’ve been okay so far but we’ve been searching for solutions for custody and after a deep search, we settled on Ledger,” he stated. “They were the right mix for us.”
According to Thieriot, the firm desires to enhance its user experience to the point where clients feel comfortable about keeping their funds with Uphold, instead of a traditional bank. Thus, guaranteeing security is a major goal:
“It’s always been our view that security’s been the most important issue with respect to mass adoption with cryptocurrencies and blockchain in general … The only reason people would take a risk of moving their money away from the boring old bank on the corner is if they can derive benefits [from] taking the plunge.”
Skalkotos stated Ledger would continue enhancing its cold storage tools, which also allow users to access and monitor their funds at any time.
“When things are moving amongst the ecosystems that’s when they’re at their most vulnerable and we’re working hard to secure those movements,” Skalkotos stated. “People should have instant access to their funds, they should control their funds and not compromise security doing so.”