Xapo: Where Billionaires Store Their Keys
Argentine entrepreneur Wences Casares spent years trying to convince Silicon Valley millionaires and billionaires that Bitcoin was the global currency of the future, that they needed to buy some, and that he’s the man to safeguard it. His startup, Xapo, has built a network of underground vaults on five continents, including one in a decommissioned Swiss military bunker. “Everyone who isn’t keeping keys themselves is keeping them with Xapo,” said Ryan Radloff of CoinShares, which has more than $500 million of Bitcoin stored at Xapo. “You couldn’t pay me to keep it with a bank.” Xapo’s billionaire backers include LinkedIn Corp. co-founder Reid Hoffman and former Wall Street trader Mike Novogratz, who’s in the process of setting up his own cryptocurrency merchant bank. Their bet is that Bitcoin is here to stay, and so is its biggest scourge, theft. The first and most important rule of owning Bitcoin is to securely keep your private key — the code that lets you spend your coins....
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