Singapore-based digital asset manager Matrixport announced in a Sunday press release that it would now be providing institutional custody services for NFTs through its Cactus Custody service.
The digital asset manager with over $10 billion in assets under management says that with this service, institutions would be able to store and manage their digital collectibles safely. In addition, Matrixport says users can control access and interactions their digital collectibles have with NFT marketplaces, smart contracts, and other GameFi or Web 3-related platforms.
According to Matrixport, these features would help reduce the risk of hacks and phishing scams. Additionally, users can choose between Warm or Cold NFT storage with varying security guarantees.
“Matrixport continues to evolve its offerings in-line with market needs. As use cases for NFTs expand and mature, investors are seeking out best-in-class protection for these valuable digital assets against malicious actors. Cactus Custody™ is stepping up with the infrastructure and tools to provide our clients with peace of mind,” said Matrixport COO Cynthia Wu.
NFTs have now garnered significant interest as they take center stage in Web3 and metaverse developments that promise to revolutionize the internet. Consequently, they have also received significant interest from institutions, with many now creating community NFT projects to get closer to their customer base.
However, it is worth noting that the explosion of interest and value in the digital space has also caught the attention of fraudsters. In Q1 2022 alone, $52 million has been lost to NFT hacks compared to $7 million in total in 2021.
Hackers and scammers have, on numerous occasions, targeted Discord servers of multiple NFT communities to launch fake minting campaigns. In addition, Twitter phishing scams have also become more popular, with scammers purchasing compromised verified accounts to promote fraudulent NFT minting and giveaway campaigns.
As reported by ZyCrypto on June 5th, hackers were able to make off with over $360,000 worth of NFTs after compromising the Discord server of the Bored Apes Yacht Club. Consequently, security is a big concern for those in the NFT space.