This article was first published here
A Hong Kong based asset management company, Fusang Investment Office is preparing the launch of a cryptocurrency custody service dubbed the Fusang Vault.
Aimed at providing custody services for high net-worth persons, the Fusang Vault is set to launch during the final quarter of this year.
Speaking to the South China Morning Post, Henry Chong, the CEO of Fusang Investment Office, touted the benefits of third party crypto custody services.
He said that a company offering such services should not only store digital assets for its clientele. But it should also offer audit services.
“
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 asset secured is of paramount importance,” he explained.
His company focuses specifically on private family offices in Asia. As per its website, the firm is licensed by the Securities and Futures Commission of Hong Kong (SFC) and regulated by the Monetary Authority of Singapore (MAS).
Chong however did not go into details concerning the Fusang Vault. But he did say that the company was working with various insurance companies to cover their clients’ digital assets.
A Rising Trend?
Crypto exchange Coinbase recently launched its own custody service, initially accepting 10 institutional investors. In order to appeal to its target customer, Coinbase Custody offered “white-glove style” service.
Only investors with balances above $10 million were considered eligible for the opportunity. Setting up the service cost $100,000 while continued use would attract a charge of 0.1% of the client’s balance.
There is growing consensus among crypto industry stakeholders that more of such custody type services are necessary to draw institutional investors into the market.