Huobi, the second-largest crypto exchange by volume, has ventured into the ever-growing crypto custodian services. Global Business and Markets, Ciara Sun via twitter, made the announcement where she wrote:
"Huobi Asset Management has launched! [...] Take advantage of the Huobi Asset Management platform and entrust your crypto portfolio with the world's leading trading institutions.
"Enjoy 24/7 risk monitoring and diversified portfolios with stable returns."
The crypto exchange's custody business would first target institutional clients and accredited investors. Huobi would also let investors subscribe to various token offerings from its trusted partners. The firm has also kept an investment cap of 10 bitcoin depending on the investor's risk profile.
Sun while commenting on the firm's decision to venture into a new business profile said:
"2020 will be an especially exciting year for the institutional market as compliance and regulation mature. We already see big Wall Street stalwarts like Tower Research, Renaissance Technologies, and some of the world's top hedge funds publicly announce their entry into the digital asset market."
She added:
"In the eyes of traditional institutions, crypto is in its infancy as an asset class but exchanges like ours aim to help provide the liquidity and market depth required for crypto to be a viable investment option."
Crypto Custody Services In Hong Kong Are Gaining Traction
In Asia, crypto custodian services are concentrated in Hong Kong, primarily because the Securities and Futures Commission in the country issued a framework for crypto services back in late 2019. This regulatory clarity helped make Hong Kong a hotspot for crypto custodian businesses in Asia.
After the release of the framework, several crypto custodians, namely Arrano Capital Aegis Custody, OSL, and Hex Trust, entered the HongKong market.
Avaneesh Acquilla, CIO of Arrano Capital, commented on their decision to launch their virtual asset custodian service in HongKong and said:
"As a designated approved virtual asset manager, we're able to have portfolios that invest up to 100 percent in virtual assets. I think we see the market very quickly shift from being a retail sort of early adopter market to being one that's driven by large flows from institutions."