An Asia-based fund management firm, Fusang Investment office, which has been focusing on family offices, is planning to launch a crypto-custody service in Hong Kong. Fusang Vault, will not only hold digital assets as well as provide periodic audits for clients, says CEO Henry Chong. The launch is planned for the fourth quarter of 2018.
Chong compared digital assets to financial bonds and stated as in conventional banking needs a custodian third party to guard customers’ assets similarly a third party is needed to hold customers’ crypto assets.
Chong stressed on the point that there has always been a lack in holding digital assets, a crypto-custodial service is essential. He also stated :
“Digital assets are akin to bearer bonds, whereby whoever that is holding the security is presumed to be the owner, and there is no registration of ownership information of the security. Hence, the way we keep digital assets secured is of paramount importance.”
Chong added that the firm is already working with insurance companies to safeguard clients’ digital assets, without giving out any more details.
According to the website, the Fusang Investment office is being regulated by the Monetary Authority of Singapore and licensed by the Securities and Future Commission of Hong Kong.
In early July, Coinbase launched a crypto-custodian solution targeting institutional clients. This custody is being operated through an independent member of U.S. FINRA (Financial Industry Regulatory Authority) in compliance with the U.S SEC (Security and Exchange Commission).
This new thought could settle the security related issue which keeps running in mind of many newbies who have just invested or planning to spend into cryptocurrencies. This idea of security would lead to an increase in people who are looking forward to exploring the blockchain world.