Cobo, a provider of digital asset custody and wallet solutions, has announced its support for The Open Network (TON). This integration aims to enhance security and flexibility for institutional clients by bringing Cobo’s comprehensive custody solutions to the TON blockchain.

Comprehensive Custody Solutions

The integration includes custodial wallets and multiparty computation wallet technology, which are part of Cobo’s extensive digital asset custody services. Through this collaboration, Cobo will support TON’s native Toncoin (TON) token, Notcoin (NOT), and stablecoins such as Tether (USDT).

Improved Security and Flexibility

The integration between Cobo and TON comes amid a significant influx of Web3 support for the TON blockchain, which powers Telegram’s new advertising platform. This collaboration aims to improve the security and flexibility of digital asset management for institutional clients, thereby expanding Cobo’s service offerings.

Technical Hurdles

While adding the TON blockchain to Cobo’s services can expand token support for the wallet provider, TON’s multichain architecture and sharding technology can present multiple technical hurdles.

Regulatory Compliance

Cobo has a strong history of regulatory compliance as a provider of institutional client services. The recent approval of Toncoin by the Kazakhstan Financial Services and Regulatory Committee (AFSA) makes this partnership a strategic move for Cobo. Following AFSA approval, Toncoin joined a list of 107 cryptocurrencies approved by the government of Kazakhstan.

Phishing Attacks on the TON Ecosystem

Despite the success of the TON ecosystem, there has been a rise in phishing attacks on the blockchain, as highlighted by SlowMist founder Yu Xian. On June 24, Xian argued that the Telegram ecosystem was “too free,” with phishing links spread through the platform’s message groups, airdrops, and other “deceptive methods.”

Although Telegram typically requires phone numbers to be tied to an account, Xian explained that phishing risks were higher for users with anonymous numbers. Users with accounts not linked to SIM cards are particularly vulnerable, as their accounts can be lost if they fall victim to phishing attacks by bad actors on the platform.

Conclusion

The integration of the TON blockchain with Cobo’s digital asset custody solutions marks a significant step towards enhancing the security and flexibility of digital asset management for institutional clients. While technical and security challenges exist, Cobo’s commitment to regulatory compliance and comprehensive custody services positions it well to navigate these hurdles and expand its service offerings.

Source: Cointelegraph