Switzerland is a big country when it comes to the world of finance, however, being a key player in the finance space doesn’t seem to be enough for the country as it is now looking to consolidate itself as one of the most important countries for cryptocurrency adoption too.
One of the biggest private banks in the country is Vontobel which has decided to ‘merge’ both the cryptocurrency world and the traditional finance sector. In announcing the launch of Digital Asset Vault, a crypto asset custody service which treats them in a similar way to traditional physical goods, Vontobe are building bridges between the two financial realms.
According to the bank's official website, the Head of Vontobel Investment, Roger Studer has been very enthusiastic about the new service which new he classified as a ‘logical evolution’ compared to traditional financial solutions.
“Digital Asset Vault is a logical evolution that extends our digital assets offering. With our innovative strength and experience, we have closed the existing gap between existing and digital assets. By incorporating our digital assets into our own banking infrastructure, we are also the first provider to meet the demanding requirements of financial intermediaries and their regulators”.
With this decision, the private bank becomes the third financial institution over the last four months to offer a digital asset custody service after the American bank Fidelity and the Canadian VersaBank made similar announcements.
In order to offer the best possible security to their customers, Vontobel integrated Hardware Security Module into its own infrastructure. This gives users a high-tech encryption option which in turn complies with “the legal stipulations in force in the country.”
One important thing to notice is that the keys are only protected if the interface of this hardware module generated them. In terms of important private keys, there isn’t a 100 percent guarantee of their security. Nevertheless, though the team at Vontobel assure that in its press release that along with the HSM “the holding of private keys is eliminated.”
Now it is well known that Switzerland is pro-crypto and even has cryptocurrency policies in place. One of Russia’s oldest bank started operations in cryptocurrencies in the country due to the obstacles imposed by President Vladimir Putin and his government back in Russia.
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