Swiss customers will now have a new type of exposure to the crypto markets via Vontobel’s Digital Asset Vault solution.
Vontobel to offer crypto custody
Investment banking and asset management giant, Vontobel, announced a new digital asset custody option earlier this week in a news release. Vontobel’s Digital Asset Vault will allow Swiss banks and asset managers to utilize the banking framework and support for their customers’ digital asset purchasing and storage desires.
The desire for digital asset involvement has grown considerably over time, both on the customers’ side, and on the side of financial middlemen. Traditional custodianship regarding such asset security and services, however, has been lacking.
Vontobel’s new Digital Asset Vault was built using Hardware Security Module (HSM) technology and then meshed into Vontobel’s banking system.
“With the new Digital Asset Vault business solution, Vontobel is therefore the first bank in the world to offer industry-standard quality standards within the established and regulated environment,” the entity said in its news release.
Vontobel’s solution allows Swiss entities, like banks, for example, to offer clients asset custody, as well as purchase, sale or transfer options. The operation also provides simpler financial statement reporting.
According to a quote from the news release, Vontobel Investment Banking head Roger Studer explained the new product as a way of meeting the growing demands of new and changing times.
[The] Digital Asset Vault is a logical evolution that extends our digital assets offering. With our innovative strength and experience, we have closed the existing gap between existing and digital assets. By incorporating our digital assets into our own banking infrastructure, we are also the first provider to meet the demanding requirements of financial intermediaries and their regulators.”
Interest from big players
Vontobel is one of many recent financial institutions that have shown interest in the crypto asset space. Just last fall, Crypto Insider reported on Fidelity’s cryptocurrency trading platform, released to combat bitcoin’s growing over-the-counter (OTC) trading interest, even amidst a lengthy crypto bear market.
Last October also saw Coinbase receive crypto asset custody approval from the hard-fisted state of New York.
Authorities, however, still have not approved the much-anticipated, elusive bitcoin exchange-traded fund (ETF), which will see its next ruling in February.
Intercontinental Exchange’s (ICE’s) Bakkt platform has also seen a further delay, past its expected January 24 launch date. Although Bakkt has continued development amidst such delays, even securing $182.5 million worth of investments.
