Vontobel, one of the most important private financial institutions in Switzerland, will offer a custody service for cryptoactives for banks and administrators of all types of assets.
The solution called Digital Asset Vault was announced this January 14 through a press release. This system aims to offer a cryptoactive custody service as if it were traditional assets. To do this, it provides users with a Hardware Security Module (HSM) and the infrastructure of this bank, which was founded in Zurich in 1924.
An HSM is a device with physical existence that generates, stores and protects keys by means of cryptography. In addition, these devices provide hardware acceleration for the cryptographic operations that it performs. One relevant fact to consider is that the keys will only be protected if they were generated within this hardware, so this system does not protect imported keys. However, at the entrance, the Vontobel team assures that with the Digital Assets Vault “the possession of private keys is eliminated”.
With this vault, financial institutions and asset managers will have the possibility to offer their users the purchase, transfer and storage of cryptoactives. Vontobel joins VersaBank of Canada and the firm Fidelity of Wall Street in the United States, being the third financial institution in less than four months to offer custody of cryptoactives.
The representatives of Vontobel ensure that users will have a simplified list of existing cryptoactives that is fully valid for tax purposes. The Digital Assets Vault would also comply with both regulations regarding cryptoactives and laws in relation to financial intermediaries.
It should be noted that Switzerland is one of the European countries with the most friendly regulation on cryptoactives. This regulation led the oldest bank in Russia, for example, to trade cryptocurrencies in Switzerland, to escape the governmental obstacles imposed in their country.