The investment bank Vontobel has recently launched a new crypto custody solution. The intention is to offer services to banks and asset managers. Vontobel is Switzerland’s major private investment bank. The information was released by the company a few days ago.
Vontobel Releases New Crypto Custody Solution
The cryptocurrency market needs infrastructure to keep growing. And this is what the investment bank Vontobel is trying to do. With the custody solution, banks and asset managers will not have to be worried about how to manage their digital assets.
Vontobel is currently the third largest financial custody provider in Switzerland. It has around $112.2 billion in assets under management according to a financial report released by the company back in 2017.
The new solution is called Digital Asset Vault and it will make Vontobel the first bank in the world to be compliant with regulators and financial intermediaries. Regulatory agencies all over the world have been trying to regulate the crypto space and companies operating on it.
Users and customers will be able to make crypto purchases, storage, manage and transfer their funds in a very easy way. In order to operate, the company has the same procedures as when it manages traditional assets. In order to be compliant with all the security procedures, the company combined the Hardware Security Module (HSM) technology and its own banking infrastructure.
This is not the first time that Vontobel appears in the news as a crypto-friendly banking institution. Indeed, the company operated as a lender that provided clients with crypto investments. In 2017, sources explained that the Bitcoin certificate provided by the bank was the most traded product on the SIX Swiss Exchange.
Switzerland has been taking several measures and regulations to receive blockchain and crypto companies. Zug, for example, is a hub for crypto firms and blockchain-related startups that operate around Europe and the world.
At the end of 2018, the Financial Market Supervisory Authority announced new guidelines that crypto business would have to apply for starting from 2019. The Financial market Supervisory Authority is the regulatory agency of the country.
Back in November 2018, a Bitcoin Exchange Traded product was launched on the SIX Swiss Stock Exchange. This suggested that institutions were still interested in Bitcoin and virtual currencies even during a bear market like the one experienced by the space in 2018.