Prime Trust offers Regulated Crypto Custody for Any ERC-20 Token
Prime Trust has started accepting any ERC-20 token along with Bitcoin and Ethereum as part of its suite of institutional and retail custody services. The announcement claims that Prime Trust is the first and only Qualified Custodian that can reliably hold custody of BTC, ETH, and any ERC-20 token.
Prime Trust is a financial institution and a blockchain-driven trust company that provides exchanges, portals, platforms, brokers, real estate syndicators, and direct-issuers with best-in-class solutions to seamlessly meet the needs of their securities offerings as well as of secondary markets.
Investment bank Nomura Holdings Inc. already joined crypto firms Ledger and Global Advisors to create a custody consortium called Komainu in may 2018. Three Financial services giants such as Bank of New York Mellon Corp., JPMorgan Chase & Co., and Northern Trust Corp. are either working or exploring crypto-custody services, according to Bloomberg.
Coinbase Custody, BitGo already offers institutional grade custody services as well.
ERC-20 is the primary technical standard used for securities tokens issued on the Ethereum blockchain. It is always difficult to hold custody of tens of thousands of different ERC-20 tokens that have been previously issued and will be issued in the future. Prime Trust enables hedge funds and exchanges to comply with SEC regulations as a Qualified Custodian.
SEC mandates that investment advisers keep client funds with a qualified custodian. Digital assets such as Bitcoin, Ethereum or other ERC-20 tokens are vulnerable to hackers. It is difficult to track, trace and recover digital assets once lost due to such events. Most of the investors hold their tokens in different digital wallets exposing these to hacking, theft, loss, estate issues, and complicated legal problems. Now investors who own tokens issued in any ERC20 ICO or STO can safeguard all of their digital assets in qualified custody and receive simplified reporting on a single statement.
The announcement said, "Prime Trust engineers spent time with developers of several different ERC-20 tokens, as well as with one of the key authors of the ERC-20 standard during a conference that a Prime Trust partner company, Polymath, hosted in Barbados. It was there that they collaboratively laid the foundation for what would become an industry innovation."
Chief Executive Officer of Prime Trust, Scott Purcell said, "We’ve had an engineering breakthrough and we are excited to be the first financial institution that can easily cold-storage any ERC-20 token--along with BTC and ETH, of course."
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Mandar Pise
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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.
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