Hong Kong-based Fusang Group has announced the launch of a crypto custody service called Fusang Vault targeted at institutional investors spread across Asia.
This new platform came only a month after the company received a green light from Malaysia regulator to launch a tokenized securities exchange, the first of its kind in Asia.
Commenting on the importance of crypto custody and the new service, Henry Chong, CEO of the company, said: “As more and more stories of the mismanagement of digital assets come to light, a conversation around digital asset custody becomes essential. There are serious security risks that are often overlooked, but these are similar to the security risks our clients face even with traditional assets. We approach digital asset custody from a financial and operational point of view, not just a technological one.”
For its crypto custody services, Fusang has partnered with Portcullis Group.
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“We want asset owners and managers to focus their resources on investment management, not administrative activities,” Chong added. “We approached our solution by considering three main roles: the technology of our platform and its security, the need for our platform to be customized to our clients’ processes, and the role that Fusang will play to ensure we do our job as custodian as efficiently as possible.”
Minimum Human Interference
The company detailed that it’s crypto custody platform has leveraged automation to minimize errors caused by human interference. Moreover, to assure security, the company is splitting up the private keys of the vaults using cryptography techniques and then physically storing them in different geographical locations.
In addition, to curb any illegal activities, Fusang has created a two-step onboarding process of its potential clients. Along with proper KYC/AML checks, it has created a customized access system for each client.
“Fusang Vault demonstrates our commitment to creating financial infrastructure for the digital asset economy,” the CEO added. “Combined with our other initiatives, we will be able to provide a comprehensive platform for institutional investors to invest safely and securely in digital assets across Asia.”
Earlier today, Finance Magnates reported that another Asian player – Onchain Custodian – is set to launch its crypto custody services in the coming days. Leading cryptocurrency exchange Coinbase, Japanese financial holdings company Nomura and SIX Group, the owner of SIX Swiss Exchange (SIX), have also launched dedicated offerings of cryptocurrency custodianship to institutional investors.