Casa, a Colorado-based provider of bitcoin security services, is launching a managed service allowing customers to buy and hold their own bitcoin, rather than using an external custodian like Coinbase.
“With self-custody using Casa it’s impossible to be hacked and nearly impossible to have your bitcoin stolen,” wrote chief executive Nick Neuman in an email. “Leaving bitcoin on an exchange (e.g. Coinbase or many others) opens it up to theft; there is a long history of bitcoin theft and hacks from exchanges.”
Just last year, the major cryptocurrency exchange, Binance, was hacked and thieves made off with bitcoin that was worth $40 million at the time.
Before the upgrade with the new product offering, bitcoin traders had to buy their bitcoin at an exchange and then move their bitcoin off of the exchange to increase security. They can now be secure by default using Casa, according to Neuman.
Bitcoin can now be purchase through Casa and deposited directly into a user’s wallet on the service where they control the funds. Casa never has custody of the user’s bitcoin at any point in the process, which the company said eliminates the risk of using an exchange.
“With the dollar declining in value and a new era of potential inflation on the horizon, consumers are naturally looking for a safe asset class that’s outside the turbulence of the existing financial system,” said Neuman in a statement. “Traditionally, if investors wanted the security and control of Bitcoin self-custody, they had to jump through multiple hoops to register with an exchange, deposit funds for trading, and then move bitcoin to their wallet. As new users begin their Bitcoin journey, they have a much simpler and faster option for buying and securing their first bitcoin with Casa.”
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