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Deepti Sri · · 6 min readRebuilding trust in crypto: Cobo seeks to revamp digital asset storage
A group of performers dressed in eye-catching orange onesies made a memorable appearance at a cryptocurrency conference in Denver last month.
Their lively song included a chorus that called out some of the most controversial figures in the industry such as Do Kwon and Sam Bankman-Fried – complete with profanity-laden lyrics.
Yet underneath the comedic veneer, the performance carried a sobering message: a commitment to steer clear of “toxic” centralized exchanges operated by these figures in the upcoming bull market.
Enter Cobo, a digital custodian that has taken advantage of the sentiment to expand its portfolio of security products by adding a neutral third-party service for storing clients’ funds.
Cobo co-founder Changhao Jiang / Photo credit: Cobo
In 2021, the company raised US$40 million in a series B round led by DST Global, A&T Capital, and IMO Ventures. It has secured a total of US$70 million in funding so far.
As the digital asset industry grows and security issues become a more pressing concern, companies like Cobo are emerging as key players in the Web3 ecosystem. The firm has been evolving into a one-stop-shop for digital asset security, seeking to compete with the likes of Fireblocks, the highest-valued digital asset infrastructure provider in the world.
The crypto-keeper
Cobo positions itself as an omni-custody firm and holds licenses in Hong Kong, Lithuania, Singapore, Dubai, and the US.
It provides services to crypto-native platforms, large institutions, internet companies, mining firms, and Web3 startups. Some names include Deribit, BitMart, Baidu, F2Pool, CyberX, Avalanche, Chiliz, and Hooked Protocol.
Cobo offers three different storage options: full custody, co-managed custody, and fully decentralized self-custody. Each of these options provides a different level of control and security.
Photo credit: Cobo
Full custody is based on bank-grade hardware security modules (HSMs) and provides the highest level of security.
Cobo takes full control of the assets and the private keys are stored in these HSMs, which are protected by multiple layers of security. This option is best suited for institutional clients and high-net-worth individuals.
Bringing trust back to the block
Casting a wide crypto net
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The Fireblocks challenger aims to be the be-all and end-all when it comes to storing digital assets.
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