Using industry expertise and in-built systems to offer crypto custody services
Cryptocurrency trends indicate that investor appetite for this asset class is rising due to the potential for higher returns. Institutional investors expect banks to manage this asset class and ensure their safe custody. This offers custodian banks an opportunity to foray into the digital assets custody space by offering crypto custody services through a robust, secure, technology-driven crypto custody solution.
Building a robust crypto custody services solution that alleviates the information security concerns of the investors will require traditional custodians to leverage digital technologies such as blockchain, cloud, application programming interface (API) frameworks and enhance systems and processes to make them resilient. To achieve this, banks will need to:
· Ensure modernized core banking systems with secure integration capabilities
· Set up a crypto vault and a research and analytics engine
· Enhance existing business applications to handle crypto asset based transactions