Demand for crypto custody rises with increasing cryptocurrency trading

With increasing interests from high-net-worth and institutional clients in cryptocurrencies, Fusang Investment Office, an asset manager focusing on Asian private family offices, is preparing to launch in Hong Kong a crypto-custody service Fusang Vault.

Expected to come on stream in the fourth quarter, chief executive officer Henry Chong said as with a custodian bank in conventional finance, an independent third party was needed in the digital token business which can hold assets on behalf of the clients, and audit these digital assets periodically.

“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 secured is of paramount importance,” said Chong.

Coinbase, a leading US crypto-exchange that has recently expanded into crypto-custody services, said their services helped safeguard and controlled digital assets…