German stock exchange, Boerse Stuttgart Group, announced on Tuesday that its subsidiary, Blocknox GmbH would be offering full custody services for different digital assets, which also includes cryptocurrencies.
Per the announcement, the startup already handles digital currency custody; however, it was on an escrow basis. The service was available for users of the BISON app, a crypto trading app backed by the stock exchange, and Boerse Stuttgart Digital Exchange (BSDEX) users.
However, today, blocknox wants to breakthrough, following its plans to provide full custody for digital currencies for institutional clients, as well as on digital assets for banks, fintechs, and assets managers.
While commenting on the development, Dr. Ulli Spankowski, the managing director of Blocknox GmbH, explained:
As a pioneer in Germany, blocknox has already been operating as a custodian of cryptocurrencies for more than one year. Now we want institutional clients to benefit from our experience and set-up as well. They can use blocknox’s reliable custody as a building block for their services around digital assets
Blocknox to Become a Regulated Financial Provider
To achieve this, Blocknox noted that it has identified with the supervisory authorities to apply for the appropriate license, regarding the newly instituted legal regulation on digital currency custody in Germany as of 1 January 2020.
blocknox, through this approach, believes that the license is deemed to have been approved provisionally. It will submit the final application at the specified deadline, which, once granted, will become a regulated financial services provider in the country.
“We welcome the regulation of crypto custody as a reasonable step towards further professionalization of the industry. Thanks to the new legislation, more institutional players are likely to enter the crypto market. We look forward to supporting them as a custody provider,” Dr. Spankowski added.
Additionally, the firm said it has developed and implemented a multi-level security concept for the custody of cryptocurrencies.
In a separate development, Gemini Trust Company, an American crypto firm, launched an in-house insurance company earlier this year to improve the safety of the digital currency in its custody.
