Elliptic, the UK-based bitcoin storage firm, has obtained ISAE 3402 accreditation following a review from KPMG.
Elliptic provides a “deep cold storage” vault solution for bitcoins, which keeps them offline and out of the reach of hackers, as well as employing additional physical measures of protection.
For some, the prospect of a physical vault brings more peace of mind than even the most advanced forms of online storage, which now incorporate features like multisignature technology.
In a blog post, Elliptic said that the KPMG review examined the following areas: “Internal access controls, financial controls, regulatory compliance (including AML and KYC processes), disaster recovery, code deployment, segregation of duties and offline bitcoin storage techniques.”
Elliptic is the first bitcoin custody provider to obtain such accreditation, which is also obtained by traditional custodian banks. James Smith, Elliptic’s CEO, said in a statement: “KPMG’s accreditation is an important milestone. It demonstrates to our customers that we have the rigorous internal processes and controls expected of any traditional financial services provider.”
The company counts law firms and hedge funds among its clients, and received $2 million in seed funding in July.
It also says to insure deposits through a “large international underwriter through London’s insurance markets.” The identity of the underwriter is not known. Previous arrangements with Lloyd’s London reportedly did not pan out.