Regal Group AG, a global alternative investment company, with offices in Dubai, Toronto, Los Angeles and Zug, Announced in 2018 its exchange custody solution, Nebbex™, that aims at putting an end to asset losses resulting from hacks, breaches, and internal theft.
“We’re excited to announce the launch of our new solution for exchanges. The Nebbex blockchain asset market truly has the potential to revolutionize the industry. Exchanges will be able to mitigate their risks of asset loss by plugging into our ecosystem and operating our redeemable tokens. They will also benefit from our insurance policy which offers additional peace of mind,” says Mr Adnan Haider, CEO of Regal Group AG.
The Nebbex™ Protocol revolves around a patent-pending off-line system using smart contracts to reconcile assets out of a physical vault, in which all assets are held in deep cold storage. The state-of-the-art vault is located in the Dubai DMCC region, voted as the #1 free trade zone in the world for 3 years in a row by the Financial FDI magazine for its favourable trading and investing landscape. The vault has been ranked as one of the the top 5 most secure vaults globally, according to Brinks.
Unlike other physical cryptocurrency vaults that require 24 to 48 hours for withdrawals, Nebbex™ will be offering exchanges the ability to withdraw funds from its vault in under 1 hour.
The protocol offers solutions for exchanges, institutional investors and merchants looking for a secure way to transact large volumes of crypto assets in and out of the physical vault.
“There is currently nothing else like Nebbex™ in the market. Current market solutions offer security or liquidity, but none offer both. Under the Nebbex™ system, exchanges operate redeemable tokens directly from their hot wallet, with alerts cross referenced with deposits they are redeemed in under 1 hour, mitigating the risks related to custodising client assets themselves. Currently exchanges maintain a portion of client assets in hot wallets due to the transaction speed and transaction volume restrictions related to physical cold storage.
“Typically you have to store your assets in cold storage in a vault if you want a certain level of security, but then you have to wait 24 to 48 hours or more if you need to withdraw your crypto assets. On the other hand, if you want liquidity you have to use a hot wallet which, as we know it, is very risky and the last place you want to hold any significant amount of assets in,” added Mr Haider.
The hacking and internal theft problem remains critical in the cryptocurrency industry and will likely not go away. Hackers are very sophisticated and will always find a way to access hot wallets, and database servers, In the first half of 2018 alone, over a billion dollars worth of fiat and cryptocurrencies were stolen from various exchanges worldwide.
“Institutional investors see the value of owning cryptocurrencies like Bitcoin, Ethereum and others, but they are still reluctant in investing any significant amount of money in this asset class, and that’s almost entirely due to the lack of solid and flexible custody solutions in the market,” said Mr. Amine Rahal, head of digital strategy for Nebbex™.
Nebbex™ is currently in BETA and seeking exchanges to join its early adopter program. For a limited time, the company is also opening a private presale for exchanges, institutional investors and crypto funds interested in being part of the project. Learn more about the pilot program and the private presale on www.nebbex.io