iTrustCapital, the world’s largest crypto IRA investment platform, has announced it will be taking steps to enhance its existing security protocols by integrating with Coinbase Custody. The company, which recently passed the $1 billion assets on platform milestone, provides qualified IRA and 401k retirement funds 24/7 access to cryptocurrencies and precious metals through its IRS compliant platform. The move comes as the value of the cryptocurrency markets has surged over recent months, putting more responsibility on operators to safeguard funds against attacks.
Despite the recent market downturn, enthusiasm for Bitcoin and cryptocurrencies as a long-term store of value hasn’t been dampened. Nevertheless, increased adoption calls on operators to rise to the challenge, including staying ahead of the curve when it comes to cybersecurity. According to security firm Slowmist, nearly $15 billion of cryptocurrencies have been lost to hackers over time, representing 0.88% of the total market cap of cryptocurrencies in June 2021.
Increasing Security in Response to Growth
Like many other firms, iTrustCapital has experienced impressive growth in 2021 as crypto has enjoyed an unprecedented amount of attention and investment. Leveraging its low-cost, tax-advantaged trading platform, the company is well-positioned to capitalize on the growing appetite for crypto from long-term investors. Since inception, investors have opened nearly 50,000 accounts on the iTrustCapital platform with 13,000 active monthly users and thousands of new users onboarding each month. The platform has exceeded $1.5 billion in total trade volume this year already and boasts the lowest trading fees among the crypto IRA investment category.
However, in recognition of its increasing fiscal responsibility, the firm is now taking measures to augment its security by integrating one of the world’s most trusted crypto custodians, Coinbase Custody. The company operates as a qualified custodian and fiduciary under NY State Banking Law, standalone and independently capitalized from Coinbase’s main business under the Coinbase Inc. Entity.
It uses segregated cold storage wallets which are insured by a commercial crime insurance policy worth over $250 million. The company also holds SOC 1 Type II and SOC 2 Type II certifications, attesting to its financial reporting standards.
In a press release accompanying the announcement, Todd Southwick, CEO of iTrustCapital, stated:
We’re very excited about this integration with a trusted leader in the crypto space, particularly on the heels of the exponential growth we’ve experienced this year. […] Going forward, we’re well-positioned to capitalize on the growing demand for investors to include digital assets and physical gold in their retirement accounts.
A Trend for Long-term Investing
In response to growth and demand, iTrustCapital has been adding more digital currency assets to its platform, such as Cardano (ADA), DOGE, Uniswap’s UNI, and most recently Sushi (SUSHI) – and has outlined plans to expand further. The platform is open to all qualified US-based investors.
However, it’s evident that the appetite for cryptocurrency as a long-term store of value extends further than US shores. A recent survey of over 1,200 UK adults found that more had invested in cryptocurrencies than in stocks over the last year.
Furthermore, recent data from on-chain analytics firm Glassnode appears to indicate that those who have entered the cryptocurrency markets this year are reluctant to sell, even once their positions move back into a profitable state. Therefore, the data appears to back up the growth trajectory of iTrustCapital – the new generation of crypto investors is here for the long game.