Tuesday, February 18, 2020

A Boost To Institutional Adoption As Online Swiss Bank Integrate Crypto Custody

Babatunde Modupe
I am a freelance writer, Poet, blogger and cryptoenthusiast that is totally interested in blockchain technology and sharing it's Information with others.

A major online Swiss Bank, Swissquote has partnered Zug-based crypto storage firm to aid crypto custodian service on its platform. Swissquote announced this partnership on Friday as it is set to offer institutional investors the service of transferring Cryptocurrencies from their wallet to a Swissquote account and vice versa.

Institutional Adoption and Custodianship in Crypto Market

The integration of crypto custody by Swissquote signals the growth of institutional adoption of cryptocurrency. Swissquote, a $618 million worth online banking group’s adoption of custody is a feature of its plan to expand its scope and services. The firm had previously opened a cryptocurrency trading platform, allowing its clients to trade the five significant digital assets, including bitcoin, XRP, litecoin, and ether in 2017.

The crypto custody adoption is addressing a major missing link of the crypto infrastructure. That stems from the role of crypto exchanges in serving as custodian which raises regulatory concerns and also put the security of assets at risk. Meanwhile, the traditional custodian lacks the experience of handling digital assets, whose security relies on holding wallets’ private keys near and dear. It had been a significant bane keeping institutional investors away from investing in Cryptocurrencies.

The Swissquote partnership with crypto storage, a fintech company is placing the role of crypto custodianship with a firm that knows how to handle a crypto job. Crypto storage service includes offering proprietary infrastructure solution to manage private keys, both physical and digital, on highest grade hardware security modules. This is similar to what is offered by the Swiss national bank.

Also, crypto storage ensures its rack servers remains safe from physical attack. The CEO of crypto storage Stijn Vander Straeten stated that they use military bunkers in a secret location as a shield to protect their servers. He further noted that even a nuclear bomb could not harm those bunks.

Swissquote Expansion To Asia

Swissquote also noted in the announcement its plans to expand to its business to Asia. At the moment the group has established a branch in Singapore and plans to apply for a capital markets services license from the Monetary Authority of Singapore (MAS). It will also be listing 14 Asian exchanges on its platform for real-time trading. This will be expanding the reach of its crypto trading and custodian services.

Meanwhile, the step taken by the Swissquote indicate institutional demand, and this shows that the next phase of crypto adoption is taking place already.

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