Digital payment firm Square is building a Bitcoin hardware wallet, with CEO Jack Dorsey and hardware manager Jesse Dorogusker both confirming the plan on Twitter.
The tech entrepreneur and Bitcoin spokesman first teased the idea of a Square hardware wallet and custody last month, bu revealed today that “we do.”
We do it #Bitcoin https://t.co/IwbKuBoXGv
– jack (@jack) July 8, 2021
Dorogusker said on Twitter that Square wants to make Bitcoin custody more common and outlined the way to roll out the hardware wallet:
“We have a lot of issues and problems to reconcile, and we start with this product direction: Bitcoin first, global distribution, multisig to achieve ̵6;assisted self-custody’ and prioritization of mobile use.”
Our next step is to build a small, cross-functional team that will be led by @max_guise (welcome back !!). We incubate this full stack of technology, design, product, production and supply chain with @templetonthomas & Square’s hardware team to start with a strong foundation.
– Jesse Dorogusker (@JesseDorogusker) July 8, 2021
Dorsey explained the term “assisted independent custody” last month, noting that the company seeks to provide a simplified experience for managing a hardware wallet.
“Custody does not have to be all-or-nothing. We can probably simplify custody through ‘assisted self-custody.’ The assistant requires excellent product design: minimal setup time, depending on existing devices and end-to-end reliability, ”he said.
As crypto has seen a massive increase in speculation from new investors amid the sector’s growth over the last 12 months, the topic of crypto custody is becoming increasingly important.
Hardware wallets are one of the safest ways to keep cryptocurrencies because they allow users to store their private keys and holdings on external offline devices. But average users complain that they are complicated to learn to use.
Related: Breakthrough hardware wallet brings enhanced cold storage efforts
Storing funds on a stock exchange can be risky as the user does not have full control over their assets which can be lost by hack or caught in rules.
It is also alarmingly easy for hackers to push users’ digital assets by using tactics aimed at acquiring personal information such as sim swaps, malware and even fake apps on Google Play.
Software wallets on computers or mobile phones also face the risk of malware.