Winklevoss Brothers File New Patent for Crypto Key Storage System

The founders of the Gemini digital asset platform have filed a new US patent for securely storing digital assets.

The founders of digital asset platform Gemini, Cameron and Tyler Winklevoss, have filed a new patent for securely storing digital assets, according to a document published by the US Patent and Trademarks Office (USPTO) on Tuesday.

The patent, named “Systems and methods for storing digital math-based assets using a secure portal”, outlines a plan to develop a network of computers capable of generating accounts for storing cryptocurrencies or cryptocurrency-related exchange-traded products (ETPs). The computers would be isolated, like a cold storage device, except during transfer of assets and would have access to a secure portal, which may connect the machines to the blockchain network during transactions, if required.

The new method divides a digital asset account into a “plurality of private keys” for increasing the safety of one’s portfolio. It suggests different ways of storage, including paper, laminated card and even papyrus, with at least one set of keys stored on an electronic memory device, such as a flash drive, CD or DVD. In the case of retrieval, the rightful owner should provide three forms of identification.

“Private keys for a multi-signature account may be stored as backups, e.g., in secure storage, which may be difficult to access, and may be used in the event that more readily obtainable keys are lost,” the filing states.

The patent mentions Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC) while describing its application to “digital math-based assets,” in addition to obscure altcoins like IxCoins, Qoras, YbCoins, and BBQcoins.

The Winklevoss brothers have a big list to their credit for crypto-related patents. In May, Winklevoss IP won a patent application for crypto-based asset trading that allows for the settlement of ETPs using cryptocurrencies. In June, the entrepreneurs also won a similar patent for the creation of crypto-based ETPs.

However, it remains unclear when these instruments will hit the market, given the Securities and Exchange Commission’s (SEC) harsh requirements. In March 2017, the Winklevoss brothers tried to list Bitcoin exchange traded funds (ETFs) on exchanges, but the regulator rejected their proposal twice, citing “the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”

In a possible change of its tune, SEC might be moving towards approval of Bitcoin ETFs following recent news that the Trump administration made its fourth appointment to the SEC, choosing Elad Roisman, who is known for his pro-crypto comments.