The Swiss investment bank Vontobel is now offering institutional investors a custody solution for digital assets. The newly created infrastructure should enable customers to buy, store and transfer cryptocurrencies like conventional assets.
The investment bank Vontobel announced in a press release on January 14 that Digital Asset Vault provides a custody solution for digital assets for banks, asset managers and asset managers. According to the bank, they can offer their customers „an end-to-end range of digital asset services“. It should be possible within the banking infrastructure to buy, deposit and transfer coins.
Vontobel: Digital Asset Vault meets the standards Institutionals demand
The investment bank believes that this will fill a gap in the market. It is true that financial intermediaries have a great interest in offering their customers digital products and services. So far, however, no traditional custodian has offered the market a solution that meets the standards required by institutional market participants. The Bank refers in particular to security aspects and the consistency in the range of services.
The new offering is based on a Hardware Security Module (HSM) technology solution. This was embedded according to the bank’s own infrastructure. Digital Asset Vault is the first solution in the world that enables digital asset services with industry-standard quality standards and regulatory compliance. The connection of the custody solution should be very easy for asset managers and co.
What does the solution offer customers?
According to Vontobel, the new solution offers customers an alternative to previous personal registration and custody with other providers. There is no need to keep private keys. Purchase, sale and transfer are therefore carried out in compliance with Global and Best Execution. The service offers users a „consolidated overview with, for example, a simplified set-up for tax purposes“.
The press release cites Roger Studer, Head of Vontobel Investment Banking. Accordingly, the Digital Asset Vault is a „logical development that expands Vontobel’s digital assets offering.“ Vontobel claims to be the third largest provider in Switzerland for B2B services in the custody execution sector and provides services for more as 100 banks and asset managers in the amount of 12 million securities transactions per year.
Vontobel showed a greater interest in cryptocurrencies from the beginning than many of its competitors. So the institute put z. For example, the Bitcoin Participation Certificate, which tracks the Bitcoin price , and how any other bearer certificate can be traded on the stock exchange or over the counter. The certificate enables investments in Bitcoin without actually having to buy a cryptocurrency with the associated default risks. Holders of a certificate, for example, are not threatened by hacker attacks.
At best, Vontobel’s offer could become a transmission belt in realizing low-threshold retail offerings, thereby increasing demand for cryptocurrencies. Many, especially inexperienced investors, the purchase of crypto exchanges and the safekeeping in their own wallet so far too cumbersome or too risky.
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