Fusang Investment Office Plans to Launch Crypto-Custody Service in Hong Kong
The Fusang Investment Office, an Asian asset manager focused on family offices, plans to launch its crypto-custody service in Hong Kong this year, local media outlet the SCMP (South China Morning Post) reports July 22.
According to Henry Chong, the company’s CEO, the new crypto-custody service will not just hold digital assets for clients but also provide “periodic audits”. Fusang Vault, the service, will launch in the last quarter of 2018.
Chong said, comparing crypto assets to financial bonds, that there is an increasing need and demand for independent service that would hold clients’ digital assets, similar to the demand for “custodian bank services in conventional finance”.
Chong asserted that since storing crypto assets “lacks the registration of ownership data”, a custody service such as the Fusang Vault, is of great importance:
“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.”
He added that the asset management firm is already collaborating with insurance companies to safeguard clients’ crypto assets. However, Fusang’s CEO refrained from specifying any features of the upcoming crypto-custodial service.
According to the firm’s website, the Fusang Investment Office is licensed by the Hong Kong Securities and Futures Commission, and regulated by the Monetary Authority of Singapore.
Earlier this month, Coinbase, one of the leading crypto exchanges, introduced a “crypto-custodian solution” for institutional clients. The custody is operated and run by an independent member of the U.S. FINRA (Financial Industry Regulatory Authority), and licensed with the U.S. SEC (Security and Exchange Commission).
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