BC Group, which runs several blockchain firms, including Anxone, a cryptocurrency trading platform, and OSL, a digital asset brokerage, said it planned to offer the service to fulfill the needs of Asia’s institutional investors.
The company claims that the launch of an insured cryptocurrency custody service is the first of its kind offered in the region. The insurance service is provided by the UK based companies.
Hugh Madden, the firm’s chief technology officer, has this to say about the service “BC Group’s custody service removes one of the key barriers that has to date prevented professional traders and institutions from adding digital assets to their portfolios. These traders can only transact on exchanges that align with strict regulatory and fiduciary guidelines and meet high compliance and security standards. Insured custody is a vital component in meeting these standards.”
Regarding the manner in which custodial service will be offered, Madden reflected the procedures followed by Xapo, a Swiss based firm offering custodial service. “BC Group route all incoming digital asset transfers directly to cold storage and advocate this as the industry standard.”
BC aims to make full use of fast growing institutional investor market. This year, the market is expected to see a new range of products, including trading platform Bakkt, which plans to introduce several crypto related products to investors, starting with Bitcoin futures with physical delivery.