Hong Kong continues to cultivate its fintech ecosystem with the latest license issuance to the first-ever digital asset custodian, Aegis Custody.
Backed by major Chinese investment firm Bosun, Aegis Custody was founded in 2018 and is headquartered in San Francisco. The firm states that it caters to a wide range of players including asset managers, family offices, third party trusts, exchanges and asset-based token issuers.
«Through our Hong Kong business, we will be able to service clients interested in the new digital asset economy on a global scale, while we continue our license application as a qualified custodian in the United States,» said Serra Wei, found and CEO of Aegis Custody, adding that the firm provides flexible, institutional-grade digital asset custody solutions.
Prioritizing security
The license issuance follows an announcement from Hong Kong’s Securities and Futures Commission (SFC) in November 2018 to formally bring portfolio managers and distributors of «virtual assets» under its regulatory oversight.
«In light of the significant risks virtual assets pose to investors, the SFC will adopt new measures within its regulatory remit to protect those who invest in virtual asset portfolio or funds,» the regulator's release said.
Indeed, the newly emerging asset class has various risks to consider for investors, most notably security. As a custodian, Aegis Custody underlined this risk as a major point of focus for the firm noting that more than $2 billion in assets globally in the last five years have been lost to internal theft, cybersecurity attacks and human errors.
