Fusang Investment Office, an asset manager, focusing on Asian private family offices, is eyeing to launch a crypto-custody service dubbed Fusang Vault later this year, according to reports by South China Morning Post.
As reported by the local news outlet, Henry Chong CEO of Funsang Investment Office revealed that the service will be unveiled in Q4 2018 and will hold crypto assets on behalf of customers as well as providing periodic audits for the stored digital assets.
Henry Chong stated:
“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,”
However, Chong did not reveal many details about the Fusang Vault but noted that the company was partnering with insurers to provide cybersecurity insurance coverage for customers’ crypto assets.
Chong went on to draw parallels between digital assets and bearer bonds citing whoever that is holding the security is assumed to be the owner, and there is no registration of ownership information of the security. Therefore, the manner we keep crypto asset secured is of paramount importance.
The Firm is regulated by the Monetary Authority of Singapore (MAS) and licensed by the Securities and Futures Commission of Hong Kong, according to the company website.
Notably, Jolyon Ellwood-Russell, a partner at Simmons & Simmons law firm, noted that digital-custody services are yet to be regulated. This signifies that if a user’s crypto funds are robbed or lost, then they will have to bank on only the terms and conditions of their custodian services contract.
Earlier this month, premier U.S. blockchain exchange and wallet provider Coinbase launched its crypto asset custodian service for institutional investors. Coinbase custody solution also aid clients keep their crypto funds safe by setting withdrawal limits and providing audit trails.