One of the European leaders in blockchain banking, Bank Frick, announced last week that it will be starting up a subsidiary service to provide a secure environment for institutional investors to trade in digital assets.
The bank said it is introducing a digital asset marketplace dubbed DLT Markets with the regulatory properties of the traditional financial market. It will provide institutional investors with professional access to cryptocurrencies being traded on multiple exchanges.
CEO of DLT Markets Roger Wurzel said:
“We are creating a unique market offering for institutional investors in the area of the new digital token asset class. With our fully regulated platform, we are driving professionalism with regard to the trading of digital tokens and cryptocurrencies.”
This appears to be the second blockchain-related initiative of the bank, following the recently established Distributed Ventures AG – a subsidiary tasked with promoting and financing fintech and blockchain start-ups – the bank clearly wants a stake in the future digital assets market, as CEO of Bank Frick Edi Wögerer explains: “In establishing The DLT Markets AG, we are significantly building on our leading position in the area of regulated blockchain banking.”
Evidently, the digital asset ecosystem has become a gold rush for institutional investments and while regulatory framework and a secure custody solution may be holding some back, many financial service operators are seeking for ways to stake a place in the emerging market.
Bank Frick is a private bank based in Liechtenstein with a branch that operates in the UK. It has nearly two decades of financial service experiences offered to intermediaries such as fiduciaries, asset managers, payment service providers, and fintechs. Its services include custody of crypto assets, and as per the statement, the bank supports initial coin offerings. Earlier in February, it announced an official partnership with blockchain advisory AmaZix, as part of a drive towards mainstream adoption in blockchain banking services.
Many other financial institutions are participating in the blockchain economy.
Fidelity Investments, with over half a century’s worth of experience in the financial market, whose recent valuation was estimated to be worth USD 2.46 trillion in asset under management (AUM), has launched crypto subsidiary Fidelity Digital Asset Services to provide institutional grade crypto asset custody and cryptocurrency trading services. More so, a deadline has been set for March for the release of its Bitcoin custody solution.
Also, US investment bank JPMorgan recently launched its own JPM Coin, a digital coin backed by the US dollar meant for internal money settlements between its clients. Although it may have received many criticisms from crypto enthusiasts, the gesture remains one of clear certification that blockchain and its underlying asset classes are revolutionary to the traditional financial marketplace.
Last year, top cryptocurrency exchange Binance announced that it was adding a sub-account feature to attract institutional investors. US-centered crypto exchange Coinbase also launched its over-the-counter (OTC) trading service for institutional investors. And most recently, New York-based digital asset management firm Grayscale Investstment LLC reported an increase in the number of institutional investors making up 66% of its portfolio under management.
Certainly, it’s turning out to be a bouquet of institutional grade digital investment niche, and with so many to choose from, the industry will perhaps be the replacement venture to traditional finance as many have speculated it to be.
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