Hong Kong buying and selling and asset administration agency Branding China Group (BC Group) is launching an insured custody service for cryptocurrencies, the corporate confirmed in a press launch shared with Cointelegraph on April 1.
BC Group, which owns a portfolio of varied blockchain firms, together with cryptocurrency buying and selling platform Anxone and digital asset brokerage OSL, stated it determined to construct the service to reply to the wants of institutional traders in Asia.
Its launch, it says, constitutes the primary such insured custody resolution for crypto property out there domestically, however will use United Kingdom-based insurers.
“BC Group’s custody service removes one of many key limitations that has thus far prevented skilled merchants and establishments from including digital property to their portfolios,” the agency’s chief know-how officer, Hugh Madden, commented within the press launch. He added:
“These merchants can solely transact on exchanges that align with strict regulatory and fiduciary pointers and meet excessive compliance and safety requirements. Insured custody is a crucial part in assembly these requirements.”
“BC Group route all incoming digital asset transfers on to chilly storage and advocate this because the trade normal,” Madden added, echoing practices from custody companies equivalent to Switzerland’s Xapo.
BC will capitalize on the burgeoning institutional investor market which is about for higher enlargement worldwide in 2019.
As Cointelegraph reported, this yr ought to see the debut of merchandise equivalent to buying and selling platform Bakkt, which can supply varied crypto-related instruments to traders, starting with physically-delivered Bitcoin futures.
Final yr, Cointelegraph additional famous the increasing trend in insurance coverage choices for cryptocurrency trade companies.