Categories
Anchorage Andreessen Horowitz artificial intelligence blockchain Blockchain Capital cryptocurrency Custody Enterprise Exit Fundings & Exits Libra Association M&A Nathan McCauley Security Startups TC visa

The crypto rich find security in Anchorage

Not the city, the $57 million-funded cryptocurrency custodian startup. When someone wants to keep tens or hundreds of millions of dollars in Bitcoin, Ethereum, or other coins safe, they put them in Anchorage’s vault. And now they can trade straight from custody so they never have to worry about getting robbed mid-transaction.

With backing from Visa, Andreessen Horowitz, and Blockchain Capital, Anchorage has emerged as the darling of the cryptocurrency security startup scene. Today it’s flexing its muscle and war chest by announcing its first acquisition, crypto risk modeling company Merkle Data.

Anchorage Security

Anchorage founders

Anchorage has already integrated Merkle’s technology and team to power today’s launch of its new trading feature. It eliminates the need for big crypto owners to manually move assets in and out of custody to buy or sell, or to set up their own in-house trading. Instead of grabbing some undisclosed spread between the spot price and the price Anchorage quotes its clients, it charges a transparent per transaction fee of a tenth of a percent.

It’s stressful enough trading around digital fortunes. Anchorage gives institutions and token moguls peace of mind throughout the process while letting them stake and vote while their riches are in custody. Anchorage CEO Nathan McCauley tells me “Our clients want to be able to fund a bank account with USD and have it seamlessly converted into crypto, securely held in their custody accounts. Shockingly, that’s not yet the norm–but we’re changing that.”

Buy and sell safely

Founded in 2017 by leaders behind Docker and Square, Anchorage’s core business is its omnimetric security system that takes passwords that can be lost or stolen out of the equation. Instead, it uses humans and AI to review scans of your biometrics, nearby networks, and other data for identity confirmation. Then it requires consensus approval for transactions from a set of trusted managers you’ve whitelisted.

With Anchorage Trading, the startup promises efficient order routing, transparent pricing, and multi-venue liquidity from OTC desks, exchanges, and market makers. “Because trading and custody are directly integrated, we’re able to buy and sell crypto from custody, without having to make risky external transfers or deal with multiple accounts from different providers” says Bart Stephens, founder and managing partner of Blockchain Capital.

Trading isn’t Anchorage’s primary business, so it doesn’t have to squeeze clients on their transactions and can instead try to keep them happy for the long-term. That also sets up Anchorage to be foundational part of the cryptocurrency stack. It wouldn’t disclose the terms of the Merkle Data acquisition, but the Pantera Capital-backed company brings quantative analysts to Anchorage to keep its trading safe and smart.

“Unlike most traditional financial assets, crypto assets are bearer assets: in order to do anything with them, you need to hold the underlying private keys. This means crypto custodians like Anchorage must play a much larger role than custodians do in traditional finance” says McCauley. “Services like trading, settlement, posting collateral, lending, and all other financial activities surrounding the assets rely on the custodian’s involvement, and in our view are best performed by the custodian directly.”

Anchorage will be competing with Coinbase, which offers integrated custody and institutional brokerage through its agency-only OTC desk. Fidelity Digital Assets combines trading and brokerage, but for Bitcoin only. BitGo offers brokerage from custody through a partnership with Genesis Global Trading. But Anchorage hopes its experience handling huge sums, clear pricing, and credentials like membership in Facebook’s Libra Association will win it clients.

McCauley says the biggest threat to Anchorage isn’t competitors, thoguh, but hazy regulation. Anchorage is building a core piece of the blockchain economy’s infrastructure. But for the biggest financial institutions to be comfortable getting involved, lawmakers need to make it clear what’s legal.

Categories
CES 2020 Enterprise Hardware mobile phones Samsung Samsung Electronics samsung galaxy Satya Nadella Smartphones visa

Samsung launches the rugged, enterprise-ready Galaxy XCover Pro

We got a bit of a surprise at the end of CES: some hands-on time with Samsung’s latest rugged phone for the enterprise, the Galaxy XCover Pro. The XCover Pro, which is officially launching today, is a mid-range $499 phone for first-line workers like flight attendants, construction workers or nurses.

It is meant to be very rugged but without the usual bulk that comes with that. With its IP68 rating, Military Standard 810 certification and the promise that it will survive a drop from 1.5 meters (4.9 feet) without a case, it should definitely be able to withstand quite a bit of abuse.

While Samsung is aiming this phone at the enterprise market, the company tells us that it will also sell it to individual customers.

As Samsung stressed during our briefing, the phone is meant for all-day use in the field, with a 4,050 mAh replaceable battery (yes, you read that right, you can replace the battery just like on phones from a few years ago). It’ll feature 4GB of RAM and 64GB of storage space, but you can extend that up to 512GB thanks to the built-in microSD slot. The 6.3-inch FHD+ screen won’t wow you, but it seemed perfectly adequate for most of the use cases. That screen, the company says, should work even in rain or snow and features a glove mode, too.

And while this is obviously not a flagship phone, Samsung still decided to give it a dual rear camera setup, with a standard 25MP sensor and a wide-angle 8MP sensor for those times where you might want to get the full view of a construction site, for example. On the front, there is a small cutout for a 13MP camera, too.

All of this is powered by a 2GHz octa-core Exynos 9611 processor, as one would expect from a Samsung mid-range phone, as well as Android 10.

Traditionally, rugged phones came with large rubber edges (or users decided to put even larger cases around them). The XCover Pro, on the other hand, feels slimmer than most regular phones with a rugged case on them.

By default, the phone features NFC support for contactless payments (the phone has been approved to be part of Visa’s Tap to Phone pilot program) and two programmable buttons so that companies can customize their phones for their specific use cases. One of the first partners here is Microsoft, which lets you map a button to its recently announced walkie talkie feature in Microsoft Teams.

“Microsoft and Samsung have a deep history of bringing together the best hardware and software to help solve our customers’ challenges,” said Microsoft CEO Satya Nadella in today’s announcement. “The powerful combination of Microsoft Teams and the new Galaxy XCover Pro builds on this partnership and will provide frontline workers everywhere with the technology they need to be more collaborative, productive and secure.”

With its Pogo pin charging support and compatibility with third-party tools from a variety of partners for adding scanners, credit card readers and other peripherals from partners like Infinite Peripherals, KOAMTAC, Scandit and Visa.

No enterprise device is complete without security features and the XCover Pro obviously supports all of Samsungs various Knox enterprise security tools and access to the phone itself is controlled by both a facial recognition system and a fingerprint reader that’s built into the power button.

With the Tab Active Pro, Samsung has long offered a rugged tablet for first-line workers. Not everybody needs a full-sized tablet, though, so the XCover Pro fills what Samsung clearly believes is a gap in the market that offers always-on connectivity in a smaller package and in the form of a phone that doesn’t look unlike a consumer device.

I could actually imagine that there are quite a few consumers who may opt for this device. For a while, the company made phones like the Galaxy S8 Active that traded weight and size for larger batteries and ruggedness. the XCover Pro isn’t officially a replacement of this program, but it may just find its fans among former Galaxy Active users.