One of Switzerland’s major private banking firms, Vontobel, is offering regulated cryptocurrency custody services to institutional clients such as banks, fund managers, and crypto asset managers.
The newly launched crypto custody solution is named “Digital Asset Vault” and complies with the standards set by industry regulators and financial intermediaries.
In a recent press release on the matter, Vontobel’s investment banking head Roger Studer describes the Swiss bank’s move as a world’s first:
“As far as I know, Vontobel is the only bank globally to offer itself as a custodian for digital assets.”
This development is not Vontobel bank’s first crypto-related venture; they have been offering cryptocurrency-related investment products such as Bitcoin-based certificates since 2016. Now, they simply want to increase their cryptocurrency integration.
Further speaking on the matter, Studer said:
“We decided two years ago to make the new crypto investment world available to our clients. Our custody offering is a further step in this direction.”
Vontobel’s Digital Asset Vault
Vontobel’s new custody solution will allow banks and crypto asset and fund managers the ability to offer clients a variety of crypto-related services such as the purchasing, transferring, and storage of digital assets.
The crypto custody solution Digital Asset Vault was made possible via Vontobel’s partnership with Geneva-based startup Taurus, a company specializing in crypto custody and storage.
As reported in the press release, Taurus co-founder Lamine Brahimi stated:
“The cooperation between Taurus and Vontobel is of high importance for the Swiss financial market because we are linking up two worlds: traditional banking and crypto finance.”
Therefore, Vontobel’s Digital Asset Vault operates under the same rules of the traditional banking infrastructure and benefits from the high level of security the Swiss banking industry is known for.
Also, Vontobel will be combining the traditional banking system security with Hardware Security Module (HSM) technology to protect clients’ digital assets. Overall, Vontobel’s Digital Asset Vault is purportedly the first crypto custody service of its kind and is yet another development that legitimizes the nascent asset class.
Other Potential Crypto Custody Solutions
Apart from Vontobel’s crypto custody services, there are multiple other crypto custody solutions that may be coming to market soon.
For instance, State Street, the world’s largest custodian, says their clients have a very high level of interest in crypto custody and are showing interest in cryptocurrencies. Also, one of the world’s largest investment firms, Goldman Sachs has reported seeing increased client interest in crypto custody services.
In addition to these potential crypto custody services, multiple notable firms have already launched crypto custody services, one of which comes from the largest US-based cryptocurrency exchange, Coinbase. Others include the New York regulated Gemini exchange, the soon-to-launch Fidelity Digital Assets exchange, and more.
All in all, the crypto industry and related services are continuously growing despite the relentless cryptocurrency bear market we’re in. Therefore, when this bear market finally comes to an end, the industry will be far better prepared to sustain a massive bull run once again.
Which crypto custody services do you use? Or do you hold and manage your crypto assets yourself? Let us know in the comment section below.
