At Wealth99, we’re committed to the highest level of security and protection for your investments. To ensure this, we have transitioned our custody services from BitGo to Zodia Custody, a trusted and licensed custodian for crypto and digital assets. This transition brings with it significant improvements in the security, insurance, and regulatory compliance of your digital assets.
This FAQ aims to provide you with all the details about what the move to Zodia Custody means for you, how it impacts your investment, and why this transition is crucial for enhancing the protection of your wealth.
1. Why is Wealth99 Moving to Zodia Custody?
Wealth99 is prioritizing your security by partnering with Zodia Custody, a regulated, bank-owned custodian backed by global financial institutions, including the National Australia Bank (NAB). Zodia operates under strict regulatory standards, offering bank-grade security for your assets. This transition ensures your digital assets are managed with the highest level of protection, security, and compliance.
2. What Does This Transition Mean for You?
- Enhanced Security: Zodia Custody provides institutional-grade security, ensuring your digital assets are safeguarded against potential risks.
- Insurance Protection: Your assets are insured, offering protection against unforeseen risks.
- Regulatory Compliance: Zodia is licensed and regulated, ensuring your assets are held in a secure and compliant environment, much like traditional banking.
3. What Is Licensed Custody, and Why Is It Important?
Licensed custody refers to the safekeeping of digital assets by a regulated, professional custodian like Zodia. It ensures that your assets are protected under the oversight of licensed institutions, much like traditional banks safeguard your money.
Why it matters:
- Protection Against Theft: Unlike self-custody or exchange custody, where assets may be vulnerable to hacking or loss, licensed custody offers institutional-level protection.
- Peace of Mind: Knowing that your assets are held by a licensed custodian gives you confidence that they are protected and secure.
4. What Are the Different Custody Options for Crypto?
Here’s a breakdown of the custody options available and how Zodia Custody compares to others:
|
Custody Type |
What It Means |
Risks |
Analogy |
|
Self-Custody |
You hold your crypto in a private wallet. |
If you lose your password, your assets are gone. No insurance. |
Like keeping cash under your mattress—fully in your control but risky. |
|
Exchange Custody |
Your assets are stored with a crypto exchange. |
Exchanges can be hacked, and funds may not be insured. |
Like keeping cash in a personal safe—better than self-custody but still vulnerable. |
|
Licensed Custody (Zodia) |
Your assets are held securely by a regulated custodian. |
Insured, secure, and backed by financial institutions. |
Like storing your wealth in a bank—safe, regulated, and protected. |
Bottom line: Licensed custody, like the one provided by Zodia, offers the highest level of protection, security, and insurance for your digital assets, making it the safest option.
5. How Does the Upgrade to Zodia Custody Affect You?
The move to Zodia Custody has several key benefits for Wealth99 clients:
- Maximum Security: Your assets are stored in cold storage and protected by the latest encryption technologies to prevent unauthorized access.
- Insurance Protection: In the unlikely event of an issue, your assets are insured, ensuring that you’re covered.
- Regulated Environment: Zodia Custody operates within a licensed and regulated framework, ensuring that your assets are protected according to the highest industry standards.
6. What Happens if Wealth99 Ceases Operations?
While Wealth99 is committed to stability and security, we understand that clients may have concerns about their assets if the company were to cease operations. Here’s how your assets would be handled:
Crypto Assets:
- Your crypto assets are securely held by Zodia Custody.
- A Governance Approver will oversee the smooth return of assets, ensuring they are transferred promptly.
Fiat Balances:
- Your fiat currency balances will be protected and transferred to your nominated bank account.
Precious Metals Tokens:
- The precious metals backing your tokens would be liquidated, and you would be paid in fiat currency.
How to Claim Your Assets:
- In the unlikely event of business closure, Wealth99 will notify you with instructions on how to claim your assets. You’ll need to provide the following:
- Bank account details for fiat transfers.
- Wallet details for crypto transfers.
- Liquidation requests if you wish to convert crypto to fiat.
7. Common Questions
Can I Get Proof of Zodia’s Custody?
Due to security and regulatory reasons, Wealth99 cannot publicly disclose specific details of its custody arrangements with Zodia. However, we assure you that your assets are always held securely in a regulated environment by a licensed custodian.
Can I Receive an Audit of Wealth99’s Crypto Holdings?
Wealth99 does not provide a specific audit of its crypto holdings, as these fluctuate frequently due to client transactions. However, strict internal controls are in place to ensure the proper safeguarding and accounting of all assets.
How Will Wealth99 Notify Me of Changes?
In the event of any operational changes or issues, Wealth99 will notify clients via their registered email address. For any concerns, you can always reach us at any time.
Does this change affect my membership fee?
No, you’ll gain the added benefit of Zodia’s institutional backing, but your membership fees will remain the same.
8. Why is This Transition Important for My Investment?
The transition to Zodia Custody is crucial for providing the highest level of security for your investments in the digital asset space. With Zodia’s institutional-grade protection, insurance coverage, and regulatory compliance, you can rest assured that your assets are in safe hands.
- Security: Zodia’s state-of-the-art security measures safeguard your assets from hacks and unauthorized access.
- Regulatory Compliance: Zodia is licensed and regulated, ensuring your assets are handled according to the highest legal and financial standards.
- Insurance Protection: Your assets are insured, giving you peace of mind in the unlikely event of any issues.
Wealth99’s partnership with Zodia Custody elevates our commitment to providing the highest level of security and regulatory compliance for your digital assets. By transitioning to licensed custody, we’re ensuring that your wealth remains secure and protected.
As always, if you have any questions, please contact us at hello@wealth99.com.