Last year there was a significant growth of insurance options for cryptocurrency industry businesses. Now, an insured custody service for cryptocurrencies is being launched by Branding China (BC) Group, according to a press release on April 1. This service has been created to respond to the needs of institutional investors in Asia, the press release says.
According to the BC Group, this is the first insurance custody solution of its type that will be available in this geographical region. Nevertheless, the service will use insurers based in the United Kingdom.
The BC Group is a trading and asset management firm based in Hong Kong. They own Anxone, a cryptocurrency trading platform, and OSL, a digital asset brokerage. They are the owners of other blockchain companies too. With their insured custody service, the BC Group is taking advantage of the flourishing institutional investor market.
Hugh Madden, chief technology officer at the CB Group, commented about this new 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.”
He elaborates: “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.” Therefore, “BC Group route all incoming digital asset transfers directly to cold storage and advocate this as the industry standard,” Madden concludes.