Cryptocurrency custody services are in high demand. Institutional investors and wealthy individuals show an increasing interest in Bitcoin and other currencies. For Fusang Investment Office, this is an excellent time to expand their presence in the cryptocurrency world.
Fusang Investment Office and Crypto
When people demand more exposure to Bitcoin and cryptocurrencies, service providers have to follow. Catering to these demands is a big challenge. Regulatory uncertainty surrounding cryptocurrency makes it difficult for companies to offer convenient solutions. In Asia, the situation is a bit different. Some countries clearly favor cryptocurrency as a competitor to traditional financial vehicles.
Fusang Investment Office in Hong Kong prepares to take the plunge. The company is exploring options to attract high net-worth and institutional clients. Current plans include offering a cryptocurrency custody service, which may launch in Q4 of 2018. Holding assets on behalf of clients can be a lucrative business model.
The current regulatory ecosystem surrounding cryptocurrencies remains a bit unclear. Fusang Investment Office confirms such currencies to be similar to bearer bonds. As such, whoever holds the assets need to be the owner of the currency in question. How this will factor into the company’s custody plans exactly was not officially confirmed.
Further Legitimizing Cryptocurrencies
The move by Fusang Investment Office is a big step for the crypto industry. Firms like this one bring more legitimacy to Bitcoin. Although custodial services remain a bit controversial, they are necessary to attract new investors. Coinbase offers a very similar service, which is well-appreciated by wealthy individuals.
There are some concerns over this business model. With no regulation of custody services, clients need to rely on the service providers’ goodwill first and foremost. That is not something most clients will be all too comfortable with. There are still some kinks to work out prior to Fusang Investment Office launching this service.
It is expected more of these services will come to market soon. Institutional investors have made their intentions regarding cryptocurrency rather clear. They will need access to services which can facilitate this approach. Even though cryptocurrency is all about controlling one’s own assets, high net-worth individuals prefer convenience and additional safety measures first and foremost.
Do you think cryptocurrency custodial services will lure more institutional investors into the marketplace? Let us know in the comments below.
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