IBM, a powerhouse in software and IT consulting, is making a big difference in the web3 space with the launch of Hyper Protect Offline Signing Orchestrator.
This innovation provides institutional investors with an advanced solution to securely transfer assets from cold storage wallets. In a recent demonstration from IBM, Hyper Offline Signing Orchestrator showcased its ability to automate the offline signing process to ensure the highest level of security for Bitcoin transactions.
Addressing the challenges of digital asset adoption
The surge in adoption of digital assets, especially by institutional investors, is facing challenges, including fraudulent companies masquerading as decentralized platforms. The fallout from incidents involving FTX, Alameda Research, Chelsea, and Three Arrows Capital has undermined the reputations of established cryptocurrency companies. Many institutional investors are now taking active steps to build secure infrastructure, such as running validator nodes, to protect their investments.
IBM’s cold storage solution attracts Ripple-backed Metaco
IBM’s foray into the web3 platform has caught the attention of Metaco, a Swiss-based enterprise technology company backed by Ripple Labs. Operating in over 20 European jurisdictions with heightened regulatory scrutiny, Metaco recognizes the need for a reputable web3 platform. Known for its confidentiality, IBM’s cold storage became Metaco’s strategic choice for providing institutional-grade storage solutions.
Emphasis on security in a regulated environment
IBM’s Confidential Computing division has become a trusted partner for Metaco, meeting the increasing cold storage requirements set by regulators in markets such as Singapore, Hong Kong and Japan. Adrien Treccani, CEO of Metaco, acknowledges the importance of IBM’s air-gapped cold storage in enhancing institutional security in line with regulatory requirements.
IBM’s market outlook
IBM’s strategic move into the web3 industry has garnered positive attention from shareholders, potentially strengthening IBM’s optimistic outlook. With IBM’s stock up 15% since January and trading at around $161.39 on Dec. 6, 2023, the $147.1 billion tech giant could see its profits surge as more companies adopt cryptocurrency cold storage. .
IBM’s venture into the cryptocurrency space is in line with the current bullish sentiment led by Bitcoin. Recent market data shows Bitcoin has hit a new yearly high of around $44.5,000. At the same time, on-chain data shows that Bitcoin supply on centralized exchanges continues to decline, reaching its lowest level since 2017. IBM’s strategic move positions Bitcoin favorably in the evolving cryptocurrency landscape and points to potential growth as institutional adoption continues to shape the industry.