Visa co-leads $40M funding round of crypto startup Anchorage
Are you a person who absolutely hates passwords? You are probably not alone. This is one of the most aggravating parts of gaining access to almost any website, but a new startup company looks to have the solution. Anchorage has been working on a new omnimetric blockchain security system that will remove the need for passwords, and they got a big boost when it was announced that Visa is part of a partnership that will be funding the startup company with $40 million to work on the project.
The new funding round has been co-led by Visa and Blockchain Capital, a cryptocurrency focused venture-capital firm, Forbes reported. This is the second such investment that the credit card giant has made in cryptocurrency startups, as their first venture was in Chain nearly four years ago. Chain had acquired Lightyear as part of that funding.
The funding will be used to help complete the mission to provide an alternative to cold storage based institutional custodies. This will help to ensure the security of customer’s assets. To this point, the vast majority of sites use some form of password for users to gain access into their account. However, these passwords can be easily discovered or breached, creating a huge security risk to the assets of customers.
The new platform will implement a system of multiple approvals and human reviews, which will also include a month biometric-based software to help improve the storage and security of systems. According to Anchorage co-founder Diogo Monica, this will give investors greater access and control over their holdings. The new platform will enable them to be able to easily gain access to different cryptocurrency networks without having concerns about their passwords being stolen.
In May, Anchorage announced an insurance coverage solution to help resolve some of the hot and cold storage issues related to data. This insurance policy protected against fraud or theft of digital assets and covered both types of digital asset storage in one inclusive policy. Now they are looking to protect assets even further by creating a platform that should provide additional security that will safeguard the assets of customers.
Recent reports by law enforcement and cybersecurity officials have determined that the vast majority of security breaches across the Internet occur because of stolen passwords or identities. This platform seeks to help reduce that risk potential.
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