Hong Kong-based crypto service to tap growing demand
An Asian investment firm is planning the launch of a cryptocurrency-custody service in Hong Kong.
Fusang Investment Office will hold digital assets for clients as well as provide periodic audits, through its custody service, Fusang Vault.
Chief executive Henry Chong told the South China Morning Post that the service would be launched towards the end of 2018.
Chong pointed to the increasing demand his firm had detected for crypto-custody services alongside that for traditional assets like equities and bonds.
He emphasised that it was important for firms to take the right approach to holding crypto assets.
“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 [sic] secured is of paramount importance,” said Chong.
He added that Fusang had begun working with insurance companies to help safeguard digital assets.
The increasing prevalence of custody services has generally been taken as a sign of growing demand for digital assets from both institutional investors and high-net worth individuals.
Earlier this month, crypto exchange Coinbase launched a crypto-custody solution for institutional clients.