GoldMoney Group, one of Britain’s largest precious metal storage firms, has added bitcoin to the list of commodities it is willing to store in its vaults.

Established in 2001, the firm currently stores precious metals worth in excess of $1.4bn in secure vaults across five countries.

Today sees GoldMoney launch Netagio – a spin-off business that offers a cold storage solution for bitcoins. Cold storage is a form of offline storage where bitcoins are encrypted on storage devices and placed in secure vaults.

Pros and cons

Security is the most obvious benefit of cold storing bitcoins with Netagio, as your bitcoins will be safely tucked away behind a few layers of encryption and physical security.

This might not be the best solution for speculators and those who require access to their bitcoins on short notice. However, Netagio will also allow users to freely access a few bitcoins if they happen to need them.

Even this service places an emphasis on security. It features two-factor authentication and users can set it up in such a way that their accounts can only be accessed from user-defined locations.

The service is free and you can check out the Netagio website for additional details. Simon Hamblin, managing director at Netagio, said:

“We are the only bitcoin wallet service in Europe to offer this type of free offline storage service, involving military-grade hardware, levels of encryption to give our customers comfort and security, all […] backed by a reputable company who you can trust.”

He added: “Being a part of a larger established group that has a heritage in the dealing and safe-keeping of precious metal since 2001 makes it one of the most compelling storage offerings in Europe.”

Hamblin thinks cryptocurrencies have a future, but pointed out that they remain risky at this point. In any case, GoldMoney wants to let people to buy, store and sell digital currencies, regardless of whether they succeed in the long run. As Hamblin puts it: “Bitcoin might be the one, it might not be the one.”

UK competitors

Netagio isn’t the first cold storage service to hit the market, nor is it the first of its kind in the UK. Elliptic Vault made headlines when it launched last week, underwritten by Lloyds of London.

Elliptic is planning to create a full suite of digital currency services that should make them more secure and easier to use.

At this point, however, both companies are offering what can only be described as niche service for people who cashed in on bitcoin and don’t plan on cashing out anytime soon.

This article should not be viewed as an endorsement of Netagio or Elliptic Vault, please do your own research before considering investing any funds in this service.

Vault Image via Shutterstock