- >News
- >Uphold Exchange Launches New Solution for Self Custody
Uphold Exchange Launches New Solution for Self Custody
For years the major issue with holding crypto on exchanges is that the company behind the exchange ultimately holds your private keys. Uphold Exchange is looking to remedy that issue with a new storage solution called Vault.
Vault is a multi-signature wallet where the user holds two of three keys, which gives them full control over their crypto. Uphold holds one of the keys but only has the power to co-sign user-initiated transactions, to aid with recovery.
In theory, Vault should provide superior recovery options for users while keeping crypto accessible for trading.
The service will have a membership fee but Uphold is starting the service at $50 a year, which is cheaper than a hardware wallet.
Looking to Redefine Self Custody
Storing crypto correctly has always been a challenge for new crypto users.
There have been several notable instances of crypto exchanges losing or even stealing customers’ crypto but the alternative — hardware wallets — can be difficult to use and one mistake can cost users dearly.
That leaves new crypto users with the unfortunate decision of trusting themselves with a complicated piece of technology or trusting a third party. Uphold is hoping to provide another option.
“We want to radically redefine self custody for the average user,” said Simon McLoughlin, CEO of Uphold.
“Until now, no one has offered self custody that is practical for the ordinary user. With Vault, we’ve stripped away the complexity to give users full control over their assets, without sacrificing the benefit of easy trading on a centralized platform.”
One interesting feature of Vault is that users will be able to initiate a key replacement if they lose their private keys. Previously if a user lost their private keys then there would be no way to recover their crypto.
Uphold is launching Vault with support for XRP but will expand to other chains soon. Bitcoin is scheduled to launch in the first quarter of 2024.
Security Remains Key Focus for Uphold
While the last few years have been rough for exchanges, Uphold continues to improve security.
The San Francisco-based exchange offers proof of reserves through Reserveledger and Reservechain, which means users can view the assets held on the exchange. It’s a huge step forward for transparency.
Uphold also has a strong emphasis on compliance and is registered as a Money Service Business (MSB) with FinCEN in the United States. The company is also registered as an Agent of Electronic Money Issuer in the United Kingdom.
Despite all the regulation and audits, Uphold still offers a large selection of crypto with over 250 digital assets to buy, sell and trade on the exchange in addition to precious metals and national fiat currencies.
Uphold also recently upgraded its instant withdrawal system with support for Real Time Payments (RTP), which means users can move funds to their bank accounts instantly instead of having to wait for a wire or ACH transfer.
