Swiss Investment Bank Vontobel Expands Crypto-Related Services As It Launches Crypto-Custody Feature
Vontobel is at it again, this time launching a cryptocurrency custody service. In a statement, the firm indicated that it will begin offering financial intermediaries custody solutions for digital assets. The digital asset vault adds to the number of Vontobel’s interests in the cryptocurrency industry.
Vontobel had previous excursions into cryptocurrency industry
Over three years ago, the bank launched Bitcoin-focused Tracker Certificates for its investors domiciled in Switzerland. Further in 2017, the bank unveiled a Short Mini Futures on Bitcoin that would trade on the Swiss Stock Exchange. Although the services were not popular as intended at the time, it gained traction as the industry approached boom.
Notably, the service enabled investors to speculate on the falling value bitcoin. Vontobel remained as the sole issuer of the Short Mini Futures, a property which persuaded many investors to jump onboard. Interestingly, the firm attributed the ability to offer such diverse services to its ability to innovate in the structured products sector. The services is available only to investors domiciled within the borders of the country.
Clearly, the crypto custody service is not the first instance Vontobel is making inroads in the cryptocurrency sector. However, the latest service comes at a time when the crypto industry is largely quite. Notably, the crypto world is full of substantial surprises that have so far left millions counting losses. Nonetheless, crypto enthusiasts are sticking to the conviction that bitcoin will hit $250,000 by 2022.
Following in the footsteps of Fidelity
Interestingly, there is huge optimism that 2019 will be pivotal for the industry. Notably, enthusiasts are certain that a G20 nation might unveil a fiat-linked national cryptocurrency within the remaining 11 months. Nonetheless, it is still remains certain that 2018 was a tough period for the industry. However, the same year saw great advances in the bringing together of the traditional financial industry and the crypto industry.
During the year, Fidelity Investments pioneered crypto custody services by a major Wall Street entity. Notably, the firm launched a dedicated subsidiary, Fidelity Digital Asset Services, which would focus on delivering the objectives. The subsidiary would handle trade executions on top of the custody services for institutional investors.
Abigail Johnson, CEO of Fidelity Investments commented on the developments saying, “Our goal is to make digitally native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”