The Fusang Vault is expected to be launched in the fourth quarter of 2018. The CEO of Fusang Investment Office, Henry Chong, told the South China Morning Post of the importance of third-party custodian services for cryptocurrencies.
According to the executive, such firms should be able to store assets for clients, as well as to provide auditing services. Chong told the publication:
“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.”
Fusang Investment Office is an asset management company that largely focuses on Asian private family offices. According to itswebsite, the firm is regulated by the Monetary Authority of Singapore (MAS) and licensed by the Securities and Futures Commission (SFC) of Hong Kong.
Precise details of the Fusang Vault are still unknown since Chong did not provide extensive comment on the operation of the forthcoming custodial service. However, the CEO did state that Fusang was working with various insurers who would provide coverage for the digital assets of their clients.
Elsewhere, cryptocurrency brokerage Coinbase has also been exploring custody solutions for cryptocurrencies and digital assets. Coinbase Custody was recently launched with the goal of attracting institutional investors by offering them a “white glove”-style service. Only those with balances of over $10 million will be eligible for Coinbase’s latest offering. The company will then charge $100,000 for setting up the service and 0.1% of each client’s balance for the continued use of Coinbase Custody.
In their first week of operation, Coinbase Custody accepted the applications of 10 different institutional clients who met the necessary criteria and were seeking crypto storage.
It’s hoped that once the infrastructure of the crypto space develops sufficiently, many more institutional investors will feel comfortable entering the market. Initiatives like the Fusang Vault and Coinbase Custody are a vital step in appealing to such high net-worth investors.