Cobo Monthly Newsletter - February 2024

Cobo Monthly Newsletter - February 2024


Ethena Enhances Capital Efficiency and Asset Security Through Cobo SuperLoop

Ethena, the developer of USDe, a synthetic dollar on Ethereum, is pleased to announce its strategic partnership with Cobo to leverage Cobo SuperLoop’s off-exchange custody and settlement network. Ethena will hold staked Ethereum assets in secure MPC wallets provided by Cobo and utilize Cobo SuperLoop to mirror funds 1:1 on exchanges. This adds further robustness to the Ethena off-exchange architecture, which eliminates counterparty risk associated with trading on centralized exchanges. Read more here.

Cobo Introduces MPC Co-managed Custody Solution for Bitcoin Layer 2 Bridges

Cobo is proud to announce the launch of its innovative MPC co-managed custody solution for Bitcoin Layer 2 bridges. This pioneering solution is designed to address the critical security challenges of funds flowing in and out of Bitcoin Layer 2s (L2s).

To further support the L2 projects’ needs, Cobo provides swift support for new BRC tokens as well as the option for real-time disclosure of asset balances, if required. In addition, Cobo has seamlessly integrated Know Your Transaction (KYT) and Anti-Money Laundering (AML) services, effectively streamlining regulatory and compliance processes for the projects. Read more here.

Cobo Provides MPC Custody Technology to Merlin Chain, a Bitcoin Layer 2 Network

Cobo has announced a strategic partnership with Merlin Chain, an innovative Bitcoin Layer 2 solution. Merlin Chain is a subsidiary product line from Bitmap Tech (formerly RCSV), a premier team boasting an overall market cap exceeding $500 million.

Merlin Chain will bridge multiple native assets from Bitcoin Layer 1 to Layer 2, utilizing Cobo’s cutting-edge MPC wallet solution - Cobo MPC Co-Managed Custody, to ensure all funds remain non-custodial and secure. When users engage in cross-chain transactions or airdrop lockups through Merlin Chain, assets from Bitcoin Layer 1 entering the bridge will be securely stored in the MPC wallet jointly managed by Cobo and Merlin Chain. All transactions will undergo risk policies, as defined by Merlin, conducted jointly by Merlin and Cobo before signatures are released, ensuring that there is no single point of failure. Read more here.

Product Updates

Cobo Argus Now Supports Manta Network

Users can navigate to Cobo Argus to set up single-signature authorizations on Manta Network, in addition to accessing customized DeFi bots and other functionalities.

Cobo Accounts Integrates Cobo Guard for Secure Login and MFA

Cobo Accounts now offers support for using Cobo Guard as both a login method and for Multi-Factor Authentication (MFA). Users can navigate to their Cobo Accounts and add their Cobo Guard for tasks such as logging in or resetting their accounts. Note: If Cobo Guard has been previously added to Cobo Custody, users need not repeat the process.

Events And Happenings

HKMA's Circular on Digital Asset Custodial Services

HKMA released a circular on Provision of Custodial Services for Digital Assets on 20th February, outlining standards for Authorized Institutions (AIs) offering digital asset custodial services. These standards, mirroring SFC’s requirements for Virtual Asset Trading Platform Operators (VATP), signify a monumental stride towards enhancing the safety and security of digital asset transactions. Check out the quick recap here.

Product Updates

Restaking in EigenLayer: Mitigating Risks & Best Practices

As Ethereum liquid restaking gains traction, projects have chosen Eigenlayer as their foundation. Restaking involves redistributing users' staked assets across protocols to maximize capital efficiency. However, participation in these liquid staking protocols can expose users to potential vulnerabilities within smart contracts.

The Cobo Security Team has conducted an analysis of six liquid restaking protocols and their associated LST (Liquid Staking Tokens), highlighting the risks to inform users on how to engage safely and effectively in protocol restaking. Read more here.