Former executives of a16z are establishing a crypto hosting company and receiving support from a16z

On April 27th, according to sources familiar with the matter, Riyaz Faizullabhoy, a former Chief Technology Officer (CTO) of a16z, and Nassim Eddequiouaq, a former Chief Information Security Officer (CISO), are establishing an institution centric cryptocurrency custody company, which has received support from a16z.

Former executives of a16z are establishing a crypto hosting company and receiving support from a16z

– Introduction
– Who is Riyaz Faizullabhoy?
– Who is Nassim Eddequiouaq?
– The Establishment of a New Cryptocurrency Custody Company
– The Role of a16z in the New Company
– Why Institutions Need Cryptocurrency Custody Companies
– How Will the New Company Ensure Safe Storage and Security of Cryptocurrencies?
– Conclusion
– FAQs
# Riyaz Faizullabhoy and Nassim Eddequiouaq Establish a New Cryptocurrency Custody Company
On April 27th, 2021, sources revealed that Riyaz Faizullabhoy, a former Chief Technology Officer (CTO) of a16z, and Nassim Eddequiouaq, a former Chief Information Security Officer (CISO), are establishing a new cryptocurrency custody company. A custody company is a firm that holds assets for safekeeping, commonly used in the financial world to hold securities and cash. In this case, the company’s focus will be on cryptocurrency storage for institutions.

Who is Riyaz Faizullabhoy?

Riyaz Faizullabhoy is a technology expert with vast experience in software engineering, product design, and architecture. He spent 13 years at Goldman Sachs in various roles before joining Andreessen Horowitz (a16z) as Chief Technology Officer. At a16z, he was responsible for building and managing the firm’s IT infrastructure and software development. He left a16z in 2020 to start his own venture, which includes the establishment of this cryptocurrency custody company.

Who is Nassim Eddequiouaq?

Nassim Eddequiouaq, on the other hand, is an experienced security professional with expertise in network security, cryptography, and policy. He has been a security consultant for over a decade, working with companies in finance, telecoms, and the public sector. He was formerly the Chief Information Security Officer (CISO) for a16z, responsible for information security strategy and implementation. He will join Faizullabhoy to help establish and run the new cryptocurrency custody company.

The Establishment of a New Cryptocurrency Custody Company

The new company, which is yet to be named, will be centered around offering cryptocurrency custody services to institutional investors. Institutional investors refer to entities like pension funds, hedge funds, insurance companies, and high net worth individuals. The company will provide secure storage of cryptocurrencies and protect them from theft or loss. This will enable institutions to invest safely in cryptocurrencies, which is increasingly becoming a crucial asset class.

The Role of a16z in the New Company

According to sources, the new company has received financial backing from a16z, the Silicon Valley venture capital firm. While a16z has not confirmed its involvement, it is not surprising given Faizullabhoy’s former position at the firm. A16z has been a prominent investor in cryptocurrency-related startups like Coinbase, MakerDAO, and Compound.

Why Institutions Need Cryptocurrency Custody Companies

The need for cryptocurrency custody companies has arisen due to the advent of institutional investment in cryptocurrencies. Institutional investors require a high level of security and compliance when handling their assets. Cryptocurrencies are particularly vulnerable to theft and loss since they exist purely online, making them easy prey for hackers. A cryptocurrency custody company offers institutions a secure way to invest in cryptocurrencies without the risk of loss or theft.

How Will the New Company Ensure Safe Storage and Security of Cryptocurrencies?

The new company’s primary focus will be on security and compliance. They will use multi-signature cold storage wallets to store cryptocurrencies, which is considered the safest storage method. The company will also employ best practices in information security, such as firewalls, encryption, and access control. Compliance will be ensured by following regulatory guidelines like KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures.

Conclusion

The establishment of a new cryptocurrency custody company by Faizullabhoy and Eddequiouaq is a positive move towards institutional adoption of cryptocurrencies. The company will provide a secure way for institutions to invest in cryptocurrencies, which is becoming an increasingly essential asset class. Secure cryptocurrency storage is critical to the success of institutional investment in cryptocurrencies, and this new company aims to provide just that.

FAQs

1. Will the new cryptocurrency custody company be available to retail investors?
Ans: No, the company will be centric to offering its services to institutional investors.
2. How will the new company compete with existing cryptocurrency custody companies?
Ans: The company aims to offer better security and compliance than its competitors, particularly in areas like multi-signature cold storage wallets.
3. Will the new company offer custody for all types of cryptocurrencies?
Ans: Yes, the company aims to offer custody for a wide variety of cryptocurrencies.