The second-biggest crypto exchange Huobi enters the digital asset industry by launching a new digital asset custody platform, expanding even more by getting into the custodian business so let’s find out more in the Huobi token news today.
The digital asset custody business is quite similar to the custodian business for equities since third-party neutral holders are keeping the asset as the deal settles. In Asia, most of the industry is stationed in Hong Kong because of the favorable rules. Huobi enters the digital asset industry as they started targeting accredited investors and institutions that will let investors subscribe to token offerings from partners on the platform with an investment ceiling of 10 BTC depending on the risk profiles.
Huobi Asset Management has launched!
Take advantage of 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.#HuobiManagement
— Ciara Sun (@CiaraHuobi) July 27, 2020
The head of global markets at Huobi Group Ciara Sun said that:
“2020 will be an especially exciting year for the institutional market as compliance and regulation matures. We are already seeing 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. 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.”
In Asia, the custody business is focused in Hong Kong because of the region’s Securities and Futures Commission created a favorable framework for the industry in 2019. Since then, half a dozen custodian companies opened their doors such as Hex Trust, OSL, and Aegis Custody. At the start of 2020, Hong Kong saw its first major entries into the market with the Virtual Asset Manager Arrano Capital moving in the region. CIO of Arrano Capital, Avaneesh Acquilla 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’re seeing 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.”
Although cryptocurrency trading in China is illegal, owning crypto is not. However, by improving the technologies and the sector, there could be a huge change in the near future in mainland China.
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