Cryptocurrency self-custody, which involves the owner having exclusive control over their crypto holdings, is seeing renewed adoption thanks to the introduction of a new wearable cold wallet.
Hardware wallet firm Tangem on July 17 officially announced the launch of the Tangem Ring, a new self-custodial crypto wallet designed in the shape of a ring.
By combining self-custody and wearables, Tangem’s crypto ring aims to promote the concept of self-custody while enabling day-to-day transactions, Tangem’s chief technology officer, Andrey Lazutkin, told Cointelegraph. He stated:
“We believe that cryptocurrency should bring daily benefits to humanity, not just sit in a bank vault. In other words, cryptocurrency should be used on a daily basis. And we in Tangem want to create a device for this daily use.”
Should self-custody be exposed in public?
As the Tangem Ring brings self-custody and hardware wallets closer to day-to-day life, one may wonder how secure and safe it is to carry such a wallet in public.
According to Tangem CTO, the firm’s crypto ring has similar protections as its Visa-integrated hardware wallet in the card form.
“The ring, like the Tangem wallet in card form, is protected by an access code,” Lazutkin said, adding that access to cryptocurrency will still be blocked even if it’s stolen.
“Inside, there is an EAL6+ secure element, which is impossible to hack. Additionally, since the ring is worn on the finger, it is harder to steal from the finger,” the CTO stated.
“Even if you lose it, there are security measures in place to ensure that no one can access your crypto, even if they discover that the ring is a crypto wallet,” CyberScrilla founder Alex Gomez noted in a statement to Cointelegraph. He also emphasized that many crypto owners can’t always be tied to their desks to manage their crypto, which creates the need for a mobile wallet like a crypto ring.
Jennifer Ghelardini, research analyst at Kaspa, echoed Gomez’s remarks, referring to other wearable self-custody wallets such as Ledger’s necklace pendants and keychains.
“My personal thought is that I love the idea of having an inconspicuous way to carry your crypto with you, so you will be able to sell or trade when traveling,” Ghelardini told Cointelegraph.
How are self-custodial wallets like Tangem Ring regulated?
Combining self-custody and daily cryptocurrency transactions, such as payments, might have some regulatory implications.
According to a spokesperson for Tangem, the Tangem Ring will initially launch without featuring a payment capability. “The crypto ring we are launching today will be available for pre-order and will begin shipping to users from the end of October,” the representative said.
The ring is planned to integrate with the Visa payment chip sometime in 2025.
Related: No, Denmark did not propose banning self-custody wallets
According to Lazutkin, the Tangem Ring will be available in all countries where Tangem Pay currently operates, including Europe and the United Kingdom.
European regulators have been growing increasingly concerned about self-custodial solutions and related payments. For example, the European Parliament has recently considered putting a $1,100 limit on crypto payments from self-custodial wallets but eventually scrapped the initiative.
The news comes amid the major crypto payment firms picking up the self-custody trend, launching multiple solutions uniting self-custodial crypto ownership and day-to-day payments. According to some industry executives, self-custody will be one of the main drivers contributing to the adoption of crypto payments.
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