The global outlook on cryptocurrency is fast-changing and subsequently giving rise to a large number of crypto custody solutions. The services are aimed at institutional investors and firms who seek to secure their crypto assets. Interestingly, the European sub-continent has established a firm ground when it comes to providing crypto-custody solutions.
Increasing Demand for Crypto Custody Solutions
When it comes to providing custody solutions Europe stands in the first place, followed by the United States and then Asia.
Source- JM3 Capital
Earlier this year, Swiss Investment bank Vontobel launched the ‘Digital Asset Vault. The latter allows Vontobel’s clients to issue instructions for the purchase, custody, and transfer of digital assets integrated within their familiar banking infrastructure and regulated environment. Moreover, the clientele includes over 100 banks and wealth managers. Also, this year German Stock Exchange Borse Stuttgart launched their custody service for digital assets.
For many, it is the bridge that will support institutional capital moving into the cryptocurrency market. There have been reports of major banks testing and in some cases rolling out crypto custody solutions. Moreover, the European Securities and Markets Authority (ESMA) believes that while there are difficulties in applying custodial requirements to cryptocurrencies, greater clarity around them as per the EU financial services rules will help these services flourish.
Recently, Mercury Digital Assets, a leading technology provider for digital asset markets and UniCrypt Group, an IT firm that provides crypto-management and custody solutions announced the formation of the first institutional liquidity pool for digital assets in Europe. The pool will be based in Switzerland and Liechtenstein and will go live on the 18th of November.