IBM Unveils New Cold Storage Solution For Institutional Investors’ Crypto

IBM has introduced the Hyper Protect Offline Signing Orchestrator (OSO), a cryptographic signing technology designed to enhance the security of cold storage for digital assets. This technology aims to mitigate risks associated with manual handling of assets while maintaining a secure separation from online environments.

Traditional cold storage methods face limitations, such as the need for manual procedures during transactions. The OSO technology tackles these challenges by incorporating additional security layers, including disconnected network operations, time-based security, and electronic transaction approval by multiple stakeholders. IBM emphasises that human interactions pose risks, such as inside jobs, forced attacks, or operational errors, and OSO aims to mitigate these vulnerabilities.

OSO removes manual functions in initiating and conducting transactions, resembling a time-release safe that only allows transactions between cold storage and the blockchain at specific times or through a multibody governance scheme. This approach prevents common insider attacks, such as physical access, administrative manipulation, and coercion attacks. OSO also employs “air-gapped” storage containers, ensuring assets are not accessible during rest from remote attacks.

IBM collaborates with Metaco, a digital asset manager and Ripple-owned custody firm, to implement OSO in Metaco’s Harmonize platform. OSO facilitates secure communication between different applications without simultaneous connection, reducing human errors and preventing remote access during transactions. The integration of OSO with Harmonize is expected to provide a seamless and secure cold storage system for customers, addressing the evolving regulatory requirements in markets like Singapore, Hong Kong, and Japan.

IBM’s foray into the web3 space aims to offer secure crypto storage solutions, leveraging its cloud computing infrastructure and expertise. The OSO technology demonstrates IBM’s commitment to providing institutional crypto investors with advanced tools for risk mitigation and regulatory compliance in handling digital assets. The venture aligns with the ongoing bullish sentiments in the crypto market, and IBM’s stock has seen approximately a 15 percent increase since January, reaching around $161.39 as of December 6, 2023.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.