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Coinbase Vault Goes Live to Provide Security for Storing Large Bitcoin Amounts

Recently a new Bitcoin vault and wallet, Xapo Bitcoin Wallet, was launched by Wences Casares, CEO and co-founder of Lemon Wallet (which was later sold to LifeLock for $42.6 Mn). On July 25, 2014, Coinbase, a provider of trusted and secure third-party payment processing, launched its own vault designed to provide greater security.

How does it work? Withdrawals are time delayed, with notifications delivered to users’ phones and e-mail addresses.

For increased security, users can also choose a group vault with multiple withdrawal approvers.

Pricing:

The Coinbase Vault is 100% free and has no fees.

Some features:

Time-delayed withdrawals: Withdrawals from a user’s vault have a 48-hour window during which they can be canceled.

Multiple approvers: Joint accounts can be used for extra security, requiring multiple approvers to initiate a withdrawal.

Offline storage: Up to 97% of bitcoin is stored totally offline, in geographically distributed safe deposit boxes and physical vaults.

Coinbase also says the vault can have multiple co-signers for withdrawals:

  • Withdrawals are made with two-factor verification.
  • Co-signers will get an e-mail to approve the withdrawal.
  • The transfer will be complete after the waiting period.

Recently, LTP wrote about satellite-TV provider Dish Network’s decision to begin accepting bitcoins. It was big news. On July 18, 2014, another huge announcement was made in favor of the digital currency: Dell began accepting bitcoins on its website. Dell partnered with Coinbase to enable bitcoin transactions.

About Coinbase

Founded in June of 2012, Coinbase is a San Francisco-based provider of a wallet and platform in which merchants and consumers can transact with the new digital currency bitcoin.

Some key metrics, as stated on Coinbase’s website:

  • 1.5 Mn consumer wallets.
  • 35,000 merchants.
  • 6,000 API applications.
  • U.S. bank integration.

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