Market Report

Swiss bank Vontobel launches regulated crypto custody solution




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Vontobel launches regulated crypto custody solution Crypto Heroes

Earlier today, Switzerland-based investment bank Vontobel issued a press release announcing the launch of its crypto custody solution. The new custody solution is designed for banks and asset managers.

Custody solutions are products offered by third-party providers of cryptocurrency storage and security services. These solutions are put in place in order to make cryptocurrency investment accessible to every eligible financial institution and hedge fund in the world. While retail investors have driven the cryptocurrency market over the last decade, custody solutions and other products have made it possible for institutional investors and financial bodies to venture into the market.

With the introduction of its own custodian solution (dubbed Digital Asset Vault),  Vontobel claims to be the first bank in the world to comply with standards required by both industry regulators as well as financial intermediaries.

Digital Asset Vault will enable banks and asset managers to offer numerous crypto-related services to their clients, including the purchase, transfer, and storage of cryptocurrencies. The bank announced that the custody solution works similarly to traditional asset classes, adhering closely to the rules of classic banking infrastructure. With this product, customers can invest in both traditional markets and digital currencies.

Since the security of funds is of primary importance, Vontobel decided to fuse its own banking infrastructure with Hardware Security Module (HSM) technology.

Vontobel is known as a crypto-friendly bank, serving as a lender to provide its clients with cryptocurrency investments. In 2017, reports revealed that the Bitcoin (BTC) certificate offered by the bank was the most traded product on SIX Swiss Exchange.

Switzerland has become one of the most crypto-friendly countries in the world. Last month, the Swiss Federal Council revealed that, while there is still room for improvement, current financial rules are well suited to embrace new technologies, including blockchain. The council proposed that Swiss securities law should be expanded in order to increase the legal certainty of cryptocurrencies.

The Crypto Valley (located in Zug, Switzerland) has become one of the most popular destinations for crypto and blockchain businesses, including Bitcoin ATM company Lamassu.