atato Custody vs. Cobo Custody: A Comprehensive Comparison
Selecting the right custody solution is paramount to the success of your digital assets in a blockchain-centric business. It’s vital to understand how your choice can impact the security, efficiency, and regulatory compliance of your operations.
In this feature, we’ll dive into a detailed comparison between two prominent custody services: atato Custody and Cobo Custody. Each of these solutions serves distinct segments of the market, ensuring a comprehensive view for businesses of all sizes.
Table of Contents
atato Custody: Regulatory Compliance and Affordability in One
Compliance and Licensing
atato Custody stands out by catering to the needs of blockchain startups and small to medium-sized enterprises (SMEs). Its core emphasis is on regulatory compliance and licensing, providing a secure environment for managing digital assets on decentralised applications (dApps).
Notably, atato holds the prestigious SOC 2 Type 2 and ISO27001, security certifications underlining its dedication to fortifying the security and compliance of digital assets. Furthermore, it is fully licensed in both Asia (specifically, Hong Kong) and Europe (Lithuania), significantly reducing the potential legal risks for businesses navigating the ever-evolving regulatory landscape surrounding digital assets.
Cost-effectiveness is inherent to atato’s offerings. Its custody solution features tiered, per-wallet pricing without any Assets Under Custody (AUM) fees. This cost-efficiency is particularly advantageous for Web3 SMEs looking to expand their crypto operations without being burdened by hefty fees. Moreover, security remains a top priority regardless of the package, making atato Custody a cost-effective choice.
Security and Agility
Security and agility are central to atato Custody’s offerings. The WalletConnect feature empowers users to access various functionalities by connecting to dApps across all blockchains. With regards to security, atato’s platform employs cutting-edge Multiparty Computation Technology (MPC), which in combination with atato’s robust and resilient security program, provides a level of security that mitigates the risks of hacking. Additionally, atato takes charge of disaster recovery processes and technologies, setting it apart from self-custody frameworks.
Atato shines with its “Bring Your Own Chain” and “Bring Your Own Token” solution, offering unmatched flexibility. Users can securely store and deploy cryptocurrencies on different blockchains, simplifying cross-chain operations through a unified, user-friendly interface. Unique features like Workspace functionality and Rules, Approvers, and Agents streamline operations and enhance transaction efficiency.
BOOK A DEMO OF ATATO CUSTODY APP TODAY
BOOK A DEMO OF ATATO CUSTODY APP TODAY
Cobo Custody: Designed for Large Enterprises
Multi-Chain Settlement Network
Cobo Custody offers a multi-chain settlement network called Loop, designed for crypto exchanges, miners, liquidity providers, financial institutions, and projects/fund desks. Loop facilitates fee-free transfers and instant confirmation of blockchain transactions, streamlining operations for various blockchain participants. At the time of writing, Cobo and Loop support exchanges like MEXC, Deribit, Bitmart, Pionex, and more.
By comparison, as mentioned earlier, atato also offers multi-chain support through its “Bring Your Own Chain” feature , which can significantly save companies valuable resources when it comes to custody. This feature eliminates the need for businesses to allocate developer time or hire third-party services for implementing support for smaller chains.
Atato’s “Bring Your Own Chain” solution facilitates a multi-chain environment, allowing users to secure and store any cryptocurrency on different blockchains, including Bitcoin, EVM blockchains, and non-EVM chains. This feature simplifies cross-chain operations, enabling firms to efficiently manage and secure digital assets through a unified and user-friendly interface.
With a litany of products running the game of self-custody, partial self-custody, HSM-based and smart contract-based custody, Cobo certainly boasts plenty of solutions. However, neither of their solutions may be a good option for SMEs and Web3 Startups who’s custody requirements require a degree of malleability and agency – while ensuring reliability. Companies should also carefully evaluate the added complexity of having to manage multiple separate products, each with their own security policies, different APIs, terminology and documentation.
Cobo’s NFT Custody provides a secure and efficient platform for NFT management, allowing institutions to securely store and connect their NFTs to marketplaces. Customizable role-based access control simplifies interactions, while connectivity to marketplaces facilitates compliant NFT trading.
Wallet as a Service
Cobo Custody offers HTTP-based SaaS APIs, providing users access to their crypto assets and blockchain applications across more than 80 blockchains. This solution aims to simplify the complexity of security and blockchain interactions, empowering developers to build various blockchain applications with ease. Additionally, developers can storedigital assets with Cobo Custody, leveraging its omni-custody technologies.
However, there may be a transaction fee associated with each transaction on Cobo’s WaaS. In comparison, atato Custody charges no transaction fees!
This is important to note, especially for SMEs and mid-tier VCs who are conscious of their expenses. These fees can accumulate and impact the profitability of businesses, particularly for those regularly engaged in blockchain transactions. atato’s no transaction fee policy ensures that your transactions are cost-effective, making it an appealing choice for those seeking to optimize their operational costs.
Intuitive Custody Interface
Cobo Custodial Wallet employs a 3-tier (Hot-Warm-Cold) private key storage architecture, with a majority of funds (95%) stored in cold wallets. These wallets are fortified by offline key shards distributed across global locations, enhancing security. For faster transactions, hot wallets are protected by bank-grade HSM, SGX, risk policies, and Cobo Auth, ensuring a high level of security and transaction integrity.
By comparison, atato Custody employs Multi-Party Computation (MPC) technology to enable fast and safe transactions. By fragmenting private keys and ensuring collaborative transaction signing, it offers unmatched protection. This technology has become an established global standard, with implementation handled within the security programme, and externally audited.
Comprehensive Risk Management
Cobo Custody offers a comprehensive risk control framework and real-time on-chain monitoring to manage potential risks effectively. Institutions can implement customised risk control rules, including spending limits, whitelists, blacklists, and IP monitoring.
atato Custody offers several marquee features that enhance its utility in this regard. The Workspace functionality, akin to Slack channels, allows businesses to categorise their digital wallets based on anything they like, such as location, specific requirements, and rule sets, to give an example. This feature is especially valuable for Web3 businesses with distributed operations across multiple regions or departments, streamlining processes and improving overall efficiency.
Another significant atato feature is the Rule feature, which allows customers to automate transaction approvals or rejections, simplifying internal review processes. Businesses can create custom rules for individual transactions or multiple rules for specific wallets, granting them control over various aspects, such as limiting the amount that can be transferred at once or rejecting transactions to specific addresses.
Role-based Access Control and Custom Workflows
Cobo Custody provides role-based access control and customisable workflows tailored to your institution’s scale and needs. This allows the segregation of user privileges effectively, with a customizable workflow engine and transaction approval process that can apply governance policies, all secured by Cobo Auth for multi-role and multi-level authentication.
Atato Custody also incorporates role-based access controls via its approvers and agents functionality. Approvers, which can be a user with a smartphone or atato’s system for automated approvals, play a critical role in approving operations on a wallet. As well as this, atato offers an approval service which allows clients to approve transactions without having to use the mobile app. It handles all the key generation and signing in processes in a secure manner and gives an API for them to call. This enables secure automation or programmatically approvable conditions. The multi-faceted approach to approvers ensures agency, as well as robust security for atato Custody wallets.
Comparing atato and Cobo Custody
When considering atato Custody and Cobo Custody, the choice should be based on your specific business needs, regulatory requirements, and scale. While atato focuses on enabling blockchain startups and SMEs with compliance, cost-effectiveness, and flexibility, Cobo Custody is tailored for large enterprises.
Both solutions offer unique advantages, ensuring competitive custody options that cater to the specific needs of businesses in various positions. Understanding your requirements and aligning them with your chosen custody solution is crucial for the successful management of your digital assets.