Decentralized ‘Bank-as-a-Service’ platform Bankex has announced the launch of a custodial service for digital assets. Simply named ‘Crypto Custody,’ no minimum deposit is required to use the platform. Bitcoinist reported that funds stored in the service are fully covered against natural damage, virtual threats, and human error.
So far, the custody service accepts deposits of four cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. In exchange for storage, Bankex will charge a commission of no more than 0.2 percent of the total volume of cryptocurrencies stored. Fees can be paid with their corresponding cryptocurrency. There are also plans to eventually accept BKX, Bankex’s native token.
Bankex Will Reportedly Offer Customer Service With a “Human Presence”
To make Crypto Custody more user-friendly, Bankex reportedly has plans to implement customer service offerings with a “human presence.” More specifically, users who are beginners in the crypto space will have access to concierge-style services to acclimate them to basic crypto protocols (i.e., sending cryptocurrency into Custody), but not without paying a percentage-based fee.
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The service is slated to operate similarly to the way that an offline safety-deposit box works: an agreement between the customer and Custody is made, the currency is deposited, and the customer receives a commercially and legally viable depository receipt.
An Increase in Custodial Tools Could Boost the Industry
Earlier this week, Fundstrat’s Tom Lee told Bloomberg that he believes that a lack of appropriate institutional tools, like custodial services, is holding the cryptocurrency industry back.
While Bankex’s Crypto Custody certainly isn’t the only custodial tool out there, its lack of a minimum deposit may lower the barrier of entry. In turn, smaller firms with limited crypto capital or larger firms who may only keep small holdings of cryptocurrency may finally have a service that suits their needs.
Bankex’s self-described mission is to “bridge the gap between the emerging blockchain sector and traditional finance” by providing asset tokenization services. The firm launched its token sale in late November of 2017.