Bitcoin vault service Elliptic secures $2 million in funding

UK-based Bitcoin Vault Service Elliptic has secured $2 million in seed funding from Octopus Investments.

Elliptic launched its highly secure "deep Cold Storage Cold Storage Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Read this Term" solution in January. The solution caters to institutions and individuals seeking bank-grade security for their holdings.

At the time of launch, the company indicated that its deposits are underwritten by Lloyd's London. Insurance of bitcoins, which can be viewed as fairly unstable assets, is a rare offering. Xapo, which also recently secured a large round of funding, says to also offer insurance for its wallet offering.

Several clients, including law firms, hedge funds and the Jersey-regulated Global Advisors Bitcoin Fund are said to be using the solution. The company plans on using the funding to expand its team and client base. CEO James Smith commented:

"We at Elliptic believe that the future of finance lies in digital assets, and as such it is essential that we work to both legitimise and protect the likes of Bitcoin. But digital currencies are just the start - the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology behind Bitcoin has the potential to revolutionise a wide range of industries."

The company is currently hiring for software engineers and web developers.

The announcement comes as one of their major UK-based competitors, Netagio, has been highly active of late. Netagio has leveraged gold storage expertise for its Bitcoin vault service, bringing the two together with gold-for-bitcoin buying and trading offerings.