Square will make a hardware wallet for Bitcoin, the payment company confirmed in a tweet on Thursday, just before US Senator Elizabeth Warren highlighted growing consumer and financial risks posed by the cryptocurrency market.
Bitcoin wallets can be kept offline or online at cryptocurrency exchanges, places where Bitcoin can be bought and sold for traditional currencies or other virtual coins.
With a non-custody wallet, you have sole control over your private keys, which in turn control your cryptocurrency and prove that the funds are yours.
With a depot wallet, another party controls your private keys. Most depot wallets are web-based exchange wallets.
“We decided to develop a hardware wallet and service to make Bitcoin custody more mainstream …” said Jesse Dorogusker, Head of Hardware at Square, on a Twitter thread.
Many companies have emerged to meet a growing need to protect their assets from online theft.
Last month, CEO Jack Dorsey hinted in a tweet that the company is considering creating an unprotected hardware wallet for Bitcoin. Dorsey is also the CEO of Twitter.
Cryptocurrencies hit a record cap of $ 2 trillion in April, but U.S. market regulators remain patchy.
Warren, a former U.S. presidential candidate, expressed concerns Thursday in a letter to the chairman of the Securities and Exchange Commission, Gary Gensler, in order to lay the groundwork for legislation to regulate the fast-growing cryptocurrency market.