The rising popularity of digital currencies has intensified the demand for storage services for crypto assets. To counter this demand, investment firms and trading platforms are developing storage solutions for cryptocurrencies. As a result, many speculate that the development of these secure custodial facilities will encourage large corporate institutions and wealthy personalities to invest in the digital currency sector.
Naturally, conservative and rich investors have reservations about trading in digital assets. The prevalence of malicious attacks on blockchain networks further discourages these individuals form delving into the crypto space. Therefore, such people tend to prefer conventional safe custody services offered by banks and other financial institutions.
On the other hand, institutional investors are inclined towards the enlisting of over-the-counter (OTC) services. For this reason, all financial institutions, regardless of their age, are establishing OTC solutions. However, OTC digital currency transactions are often valuable, a factor that increases the demand for storage solutions for crypto assets.
As mentioned earlier, more storage solutions hit the market as the days go by. Some of the latest entrants include:
Fusang Vault – Hong Kong
Later this year, a storage solution known as the Fusang Vault is expected to go live in Hong Kong. The project is an initiative of the Fusang Investment Office, a company that deals with securing investments of wealthy Asian families. According to the company's CEP, Henry Chong, the crypto market requires third-party platforms to store assets and conduct occasional audits. Henry reiterated on the necessity of securing digital assets. Reportedly, Fusang is partnering with insurance providers to create a protection plan that covers their clients’ digital asset storage.
Recently, the Coinbase digital currency trading platform launched the Coinbase custody service, storage solution for the US and European markets. Before the end of 2018, Coinbase intends to roll out this service on the Asian continent. To use this services, investors must have a minimum balance worth $10 million of crypto assets.
Ledger To Offer Multi-Currency Support
Ledger, a French virtual currency wallet provider, also announced that it would soon the number of assets listed in its portfolio. Precisely, the firm intends to increase the number of supported coins to 100 by the end of next year. As per the CEO, this expansion will accommodate institutional investors, wealthy individuals and hedge funds.
Evidently, developers are acting swiftly to counter the growing demand for cryptocurrency storage solutions. Therefore, it is highly probable that corporate institutions will be encouraged to invest in digital assets.