Square Inc will make a hardware wallet for bitcoin, the payments company confirmed in a tweet on Thursday shortly before U.S. Senator Elizabeth Warren flagged growing risks posed to consumers and financial markets by the cryptocurrency market.
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Bitcoin wallets can be stored offline or online at cryptocurrency exchanges, venues where bitcoin can be bought and sold for traditional currencies or other virtual coins.
With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours. With a custodial wallet, another party controls your private keys. Most custodial wallets are web-based exchange wallets.
"We have decided to build a hardware wallet and service to make bitcoin custody more mainstream...", Jesse Dorogusker, head of hardware at Square said in a twitter thread.
Many companies have emerged to serve a growing need to protect their assets from online theft.
Last month, Chief Executive Officer Jack Dorsey hinted in a tweet that the company was considering creating a non-custodial hardware wallet for bitcoin. Dorsey is also the chief executive of Twitter Inc.
Cryptocurrencies reached a record capitalization of $2 trillion in April, but U.S. oversight of the market remains patchy.
Warren, a former U.S. presidential candidate, on Thursday raised concerns in a letter to Securities and Exchange Commission Chair Gary Gensler, in an effort that could help lay the groundwork for legislation to regulate the fast-growing cryptocurrency market.