ING group plans to launch crypto custody service

ING group with over $1.1 Trillion in total assets is working its way to launch crypto custody services. Sources familiar with the matter told Reuters that ING is in its early days of testing the underlying technology and one of the bank’s several ongoing initiatives around blockchain.

Opportunities with regards to offering digital assets custody are getting competitive each passing month. The scarcity of custody options mainly from brand-name reputable financial companies has been a key roadblock for institutional investors to dive into the emerging cryptocurrency market.

Many large financial firms have already launched or preparing to start offering custody services to fill the gap. Last year, Fidelity launched its cryptocurrency custody and trading services to institutional investors. Recently it received approval from the New York Department of Financial Services to provide cryptocurrency services (custody and trading) to clients based in the New York state.

Japanese bank Nomura Holdings Inc is also preparing to offer custody of cryptocurrencies for institutional investors. Recently, Germany passed a law that will allow banks starting next year to offer cryptocurrency services, including selling and custody.

Back to ING: In a written statement to Reuters, ING bank representative said the group “sees increasing opportunities with regard to digital assets on both asset-backed and native security tokens”.

Many large financial firms are attempting to turn traditional assets such as bonds or stocks into tokenized assets using blockchain. Recently HSBC holdings announced its plans to move $20 billion assets that include equity, debt and real estate into digital assets.