The Ledger hardware wallet is among the most prominent entities in the cryptocurrency world. The service allows investors to store their digital assets offline, away from the often vulnerable centralized wallets found on crypto exchanges and other hot wallets. Now, ledger has set up a new office in Hong Kong with the aim of tapping up new clients across Asia.
Benjamin Soong, Ledger’s regional chief in Hong Kong, expects the Asian market to contribute significantly to the growth of the company. This is because the continent is home to the two leading crypto markets in the world, China and Korea. Furthermore, the demand for cryptocurrencies was at a record high in China before the local regulatory authorities imposed a ban against the possession and dealing of such assets.
In addition, Asia has several crypto trading platforms. Ledger intends to capitalize on the growing demand for security and wallet services in the region. The demand is as a result of the attempts by local exchange platforms to improve their security mechanisms against cybercriminals. In 2018, Asian crypto exchanges lost a record amount of digital assets to hacking, despite the persistence of the bear run throughout the year.
The famous Bitcoin bull run of 2017 caught many by surprise – including institutional investors. The majority of such institutions contemplated investing heavily in crypto assets after seeing the price of Bitcoin soar to a record $20,000. With the massive price drop experienced last year, it was expected that the companies would invest in cryptos. That was not the case, as many prominent institutions are still reserved about venturing into crypto trading.
Ledger has partnered with Nomura and Global Advisors to provide a reliable crypto custody solution to financial companies. The platform is called Komainu and offers both custody and security services for digital assets. Nomura has already set the precedent for banks by launching a division that exclusively deals with the custody of digital assets. Soon, other banks in the Asia Pacific region are expected to follow suit.
Benjamin concluded by saying that cryptos are still an emerging asset class, which is why it has many challenges on the security front. The closest rival to Ledger in the hardware wallet niche is Trezor. Over the past two years, the two firms have been primarily targeting individual investors. This year, the focus is expected to shift towards institutional investors.