Wake up. Cash out your bitcoin. Settle by end of day, no hot wallet required.
Sounds like a fantasy.
For many crypto investors, how to cash out large amounts of bitcoin is a genuine concern. Crypto exchanges often limit transactions to just $2,000 or $3,000, and even the Bitcoin ATM network has a cap of just $5,000 per day.
While digital currencies were founded partly on the idea of freeing consumers from the restrictions of centralized currencies, there are limitations on actually withdrawing your assets from a crypto exchange and spending them in the real world without using hot wallets that hackers can exploit.
It’s easy enough to find an online guide to walk you through your withdrawal options, but why should the process be so complex that you need a guide in the first place?
Fortunately, we’ve had the answer to this problem all along: traditional financial institutions. Stock exchanges and brokerages have established, trusted processes for cashing out their clients’ quickly and efficiently.
What they lacked was a way to include digital assets like bitcoin and ether in their portfolio.
A key challenge in handling crypto for traditional financial institutions is security. How do they know the deposits and transactions that customers ask them to process are legal and not the result of illicit activities?
Blockstation, a Canadian fintech company, has developed a blockchain-based trading platform that works with stock exchanges to enable fully compliant, regulated and insured trading of digital assets - including cryptos like bitcoin and ethereum.
The platform includes a Know-Your-Client (KYC) check before assigning investors to a licensed broker and provides real-time monitoring of market activity to regulators, as well as the ability to track the flow of funds to detect and prevent illegal activities through Blockstation’s ChainWatch tool.
When trading on the Blockstation platform, investors have the same ability to buy and sell crypto as they would on any other exchange, or make trades through their broker under the OTC model.
The best part? Because their investments are regulated, investors can cash out as needed, simply withdrawing their funds from the secure cold vault managed by their broker with all transactions settled by end of day.
What’s more, the funds stored in a broker’s cold vault are insured, meaning investors will be reimbursed in the event of a security breach (think Mt. Gox, BitThumb, and Bitfinex) or a Quadriga-style collapse that leaves other investors high and dry.
When it comes to protection against hacks, however, the Blockstation cold vault uses a multi-signature, decentralized custodianship model with private keys stored 100% offline - which means hackers can’t get in.
Tl;dr - Trade crypto on the stock exchange with Blockstation and you’ll never have to worry about cashing out limitations or the risk of a hot wallet again.
With traditional financial institutions embracing crypto, mainstream investors who avoid digital currencies (plus who were burned by hacks or other disasters) now have a trusted, familiar way to engage with this important global market.
Blockstation provides the ability for stock exchanges and their broker network to provide the stability, oversight and ability for investors to cash out on demand.
Our pilot is live, accepting a limited number of investors to trade crypto in a regulated, insured environment.
What are you waiting for?