INSUBCONTINENT EXCLUSIVE:
Visa and Andreessen Horowitz are betting even bigger on cryptocurrency, funding a big round for fellow Facebook Libra Association member
end-to-end insurance coverage.This new-age approach to cryptocurrency protection has attracted a $40 million Series B for Anchorage, led by
Blockchain Capital and joined by Visa and Andreessen Horowitz
before the term existed, and has always been on the vanguard of financial infrastructure
to the internet, has become a popular method of securing Bitcoin, Ether and other tokens
But the problem is that this can prevent owners from participating in governance of certain cryptocurrency where votes are based on their
holdings, or earning dividends
capturing returns from staking and inflation, or joining in on-chain governance.As three of the 28 founding members of the Libra Association
that will govern the new Facebook-incubated cryptocurrency, Anchorage, Visa and Andreessen Horowitz will be responsible for ensuring the
While Facebook is building its own custodial wallet called Calibra for users, other Association members and companies hoping to dive into
the United States military
When a company that had lost the password to a $1 million cryptocurrency account asked for their help with security, they recognized the
need for a more idiot-proof take on asset protection
The startup competes with other crypto custody firms like Bitgo, Ledger, Coinbase and Gemini.
Last time we spoke, Anchorage was cagey about
what I could reveal regarding how its transaction validation system worked
passwords, email addresses and phone numbers completely
Instead, clients whitelist devices held by their employees, who use the Anchorage app to submit transactions
human staff would check for any suspicious signals that might indicate a hack in progress
It uses behavioral analysis (do you act like a real human and similar to how you have before), biometric signals (do you look like you) and
network signals (is your device what and where it should be) to confirm the transaction is legitimate
The same process goes down if you try to add a new whitelisted device or change who has permission to do what.The challenge will be scaling
security to an ever-broadening range of digital assets, each with their own blockchain quirks and complex smart contracts
Even if Anchorage keeps coins safely in custody, those variables could expose assets to risk while in transit
Now with deeper pockets and the Visa vote of confidence, Anchorage could solve those problems as clients line up.While most blockchain
attention has focused on the cryptocurrencies themselves and the exchanges where you can buy and sell them, a second order of critical
infrastructure startups is emerging
Companies like Anchorage could make Bitcoin, Ether, Libra and more not just objects of speculation or the domain of experts, but safely
functioning elements of the new world economy.
