An Asia-based fund management company, the Fusang Investment Office plans to launch a crypto-custody service in Hong Kong, according to local news published in the South China Morning Post. The firm primarily focuses on family offices.
According to the company CEO, Henry Chong, the custody service, Fusang Vault will hold digital assets for clients. It will also provide period audits for the same. The firm has planned the service’s launch in the fourth quarter of 2018.
In his statement, while comparing digital assets to financial bonds, Chong said that there is a growing need to provide an independent third party to hold the clients’ crypto assets. He said it’s similar to the demand for custodian bank services in conventional finance.
Since holding digital assets lack the registration of ownership data, a crypto-custody service of great significance, Chong further added. He said that digital assets are quite similar to bearer bonds. In bearer bonds whoever holds the security is presumed to be the owner. There is no registration of ownership information of the security. That’s why the manner in which people keep their digital assets secured is of great significance, he said.
Chong informed that the company is already working closely with insurance firms to safeguard their clients’ digital assets. He, however, did not specify the features of the upcoming Fusang Vault service. As reported in the Cointelegraph, the Securities and Futures Commission of Hong Kong regulates and licenses the Fusang Investment Office.
Earlier in July this year, a crypto-custody solution targeting especially its institutional clientele was launched by the Coinbase crypto exchange. The U.S. Financial Industry Regulation Authority (FINRA) operates Coinbase Custody in compliance with the U.S. Security and Exchange Commission (SEC). Towards the end of June this year, an expert’s take on the financialization of the crypto ecosystem was also published in Cointelegraph. The report stressed on the rise of crypto custody solutions as a sign of more institutional investors coming in.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]