Bitwala chooses Solarisbank for crypto-custody of Bitcoin and Co.
German crypto-bank Bitwala will in future store its customers‘ Bitcoin and Ether balances on Solarisbank’s Solaris Digital Assets platform.
German crypto-bank Bitwala has chosen Solaris Digital Assets for the safekeeping of crypto-currencies in Bitcoin Bank and ether of its customers, according to a statement by Solarisbank on 17 November.
Solaris Digital Assets is a wholly owned subsidiary of Solarisbank AG, which provides crypto services to the parent company and its affiliates.
Crypto custody for Bitwala customers
The new joint service between Bitwala and Solaris Digital Assets is expected to be available from January 2021. Regarding the future cooperation with Bitwala, Solarisbank writes
„In the new crypto-wallet setup, the so-called „private keys“ of Bitwala customers, which provide access to the digital assets on the block chain, will be generated and managed by Solaris Digital Assets in their secure infrastructure“.
In the future, Bitwala customers will no longer have to worry about creating their own wallet themselves. The Bitwala app will provide a crypto-wallet that stores tokens directly in the Solaris Digital Assets custody solution. However, experienced customers will also be able to use their own „self-custody“ wallet in the future.
Solarisbank emphasises the security of the new approach. Each transaction will be approved separately by the end customer and authenticated by Bitwala before being validated by Solaris Digital Assets. The risk of a so-called „Single Point of Failure“ could thus be reduced.
New legal position on cryptosafety as a basis
Solaris Digital Assets was not launched until late 2019 to take advantage of the new legislation. Since 01.01.2020, crypto-custody transactions require a licence from BaFin. With a decision on 14 November, the German Bundestag decided to make crypto assets an official financial instrument with corresponding regulation in Germany.
Since December 2018, Bitwala, together with Solarisbank, has been offering an online current account with a built-in trading function for crypto currencies. In 2019, the crypto-bank launched its own smartphone app for Bitcoin banking on iOS and Android.