The co-founder and chief technology officer of Bitcoin wallet provider Casa, Jameson Lopp, revealed a growing demand for Ethereum self-custody solutions. In an interview at Bitcoin 2023, Lopp emphasized the need for Casa to offer Ethereum support due to the increasing number of users seeking this service.
Incidents like the collapse of FTX in 2022 have raised awareness about the importance of secure storage for Ethereum and its tokens, including stablecoins.
Lopp cited cases of Casa clients who experienced losses because they lacked a distributed cold-storage setup, resulting in losses of stablecoins and other assets.
To address this problem, Casa announced in December its decision to add Ethereum support, despite facing criticism from Bitcoin enthusiasts on social media.
Lopp acknowledged that self-custody can be perceived as intimidating due to the complex learning curve associated with security practices. While setting up a wallet and transferring crypto is straightforward, implementing proper security measures can be challenging.
Casa aims to simplify the process by integrating best practices directly into its product. This approach allows users to follow the software’s directions, mitigating the risk of catastrophic losses resulting from human error.
Describing Casa’s service as an “extreme-security cold-storage setup with distributed keys,” Lopp originally targeted high-net-worth individuals willing to spend $10,000 annually on custody services. However, Casa has expanded its offerings to include a free version with limited features to cater to a broader user base.
The concept of crypto self-custody traces back to the first Bitcoin wallet, BitcoinQT, developed by Satoshi Nakamoto. Despite the growth of the crypto user base, many individuals still choose to keep their assets on centralized exchanges, despite experts’ warnings against the associated risks.
In response, wallet providers are working on new technologies to simplify self-custody and encourage users to take control of their crypto assets.
