Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Exchanges => Topic started by: emjay825 on August 01, 2018, 06:17:19 PM
-
Northern Trust Corp., a leading global asset management firm with $954 billion in total assets under management, is planning to start a custody service for digital assets, Bloomberg reported (https://www.bloomberg.com/crypto) July 31.
The company’s head of corporate and institutional business Pete Cherecwich told Bloomberg that the company has started developing a strategy to secure custody-held digital assets such as cryptocurrencies (https://cointelegraph.com/tags/cryptocurrencies). He said the firm aims to offer a product similar to existing custodial services while charging lower fees:
"The fees right now the custodians are charging are pretty high, not the same fees that we get — ultimately, I believe unsustainable, because it needs to be an efficient model."
Chicago-based Northern Trust Corp. currently provides accounting services to several funds that invest part of their assets in crypto futures (https://cointelegraph.com/tags/bitcoin-futures). The firm will not launch a custody product for digital assets for at least another 12 months, according to Cherecwich.
This spring, Northern Trust launched (https://cointelegraph.com/news/northern-trust-partners-with-pwc-to-make-real-time-equity-audits-via-blockchain) a blockchain (https://cointelegraph.com/tags/blockchain)-powered product in partnership with ‘Big Four’ auditing giant PwC (https://cointelegraph.com/tags/pwc), which provides audit firms with instant access to a secure “golden copy” of private equity lifecycle events. This will reportedly improve the efficiency of the auditing process by making underlying transactions (https://cointelegraph.com/tags/transactions) more transparent to audit firms.
Early in July, crypto exchange (https://cointelegraph.com/tags/cryptocurrency-exchange) and wallet provider Coinbase announced (https://cointelegraph.com/news/coinbase-custody-targeting-institutional-investors-now-officially-open-for-business) the launch of its digital assets custodian solution for institutional investors. Their custody offering will be secured through an SEC (https://cointelegraph.com/tags/sec)-compliant and FINRA-member independent broker-dealer, Electronic Transaction Clearing. At the time of the announcement, Coinbase (https://cointelegraph.com/tags/coinbase) had already been storing $20 billion worth of clients’ crypto over six years.