The custody service, Fusang Vault, will hold digital assets for clients as well as provide periodic audits, according to the company’s CEO Henry Chong. The service’s launch is planned for the fourth quarter of 2018.
Comparing digital assets to financial bonds, Chong noted the increasing need to provide an independent third party that would hold clients’ crypto assets, just like a demand for custodian bank services in conventional finance.
“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.”
In early July, one of the world’s largest cryptocurrency exchanges, Coinbase, launched a crypto-custodian solution targeting institutional clients. Coinbase Custody is operated through an independent member of the U.S. Financial Industry Regulatory Authority (FINRA) in compliance with the U.S. Security and Exchange Commission (SEC).