TokenSoft Rolls Out Crypto Custody Service Designed for Security Tokens

TokenSoft is launching the first cold-storage custody service developed especially for security tokens.

The company has rolled out a beta version of the wallet to all its present and future clients on January 29. Dubbed as Knox (named after the U.S. Army post where gold is held), it enables enterprises to maintain a multi-signature, self-custody system for various digital currencies and securities.

TokenSoft co-founder Mason Borda 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,” Borda added.

Unlike cryptocurrencies, digital securities tend to be less decentralized in nature and have built-in restrictions for traders, according to Borda. Digital assets like bitcoin do not suffer from such restrictions.

Borda described the Knox wallet as “the first custody solution for digital securities,” adding that:

“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 can store any ERC-1404, DS-20 (Securitize), ERC-20, ST-20 (Polymath) or Harbor’s R tokens. Although it will offer support bitcoin and ether, Borda expressed that the focus would be for digital securities instead of cryptocurrencies. These securities, however, can be developed on top of the ethereum, stellar, R3 or Hyperledger blockchain platforms.

“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,” he stated.

Providing offline cold storage, enabling multiple owners to execute transactions, and cryptographic authentication are some of the security features of the wallet.

The Knox wallet has been in development since 2017 and some users had access to it last year. Though the service remains in beta, the recent release is “production grade” according to Borda. The wallet will be widely available to more customers soon although no timeline has been specified for this release yet.