New Challenges with 'Custody Services'
- Agreements with China's Hot Wallet Leader BEPAL - Opening a new concept of custodial service based on technology and finance during the first half of 2019
Attempts to introduce 'trust' concept will also come to digital assets such as cryptocurrency and blockchain. In the traditional financial market, the concept of "trust" is not better. For example, when distributing apartments, the subscriber usually makes a deposit to a trust account under the name of the implementer, rather than paying a subscription fee to an apartment implementer. Of course, trust accounts are managed by a third organization, including banks, not by an enforcement agency, with escrow accounts to prevent the implementer from embezzling on his own. In some cases, there is a deadlock in the way for the exchange to withdraw its investment, such as a one-time exit or the disappearance of a company from the ICO. This is because the trust market has not yet been formed in cryptocurrency and blockchain market. The time has come for the creation of a structural trust-building process with financial structures that entrust clients' funds for cryptocurrency exchanges or ICO customers' investments to trust accounts of external trusts until they receive ICO-based coins. Recently, Hillstone Partners announced that it would launch a digital asset management service called "Custom Service." "We have signed a contract with BEPAL, which is a business that specializes in blockchain and provides security services, in Hangzhou, China on the 15th to cooperate strategically in various areas such as consulting blockchain technology and applying blockchain technology to businesses." said Hillstone Partners. "Custody service means that financial institutions store and manage customer assets on behalf of customers in existing financial institutions," said an official at the Hilton Partners on Wednesday. For example, when a foreign investor tries to buy local stocks, bonds and cash, it has a consignment contract with a local bank and the bank takes over for it, he explained. Hwang Ra-yeol, CEO of Hillstone Partners, said, "Custody services are guaranteed in both technical and financial areas, and by ensuring a third party institution can prevent embezzlement or hacking of its employees in advance, as well as providing investors with escrow-type safeguards. We will provide them with a solution to prevent a crisis that comes with a plunge in the value of cryptocurrency currencies after funding by the "As soon as we are ready for cash-pagging through Hong Kong and foreign financial assets, we will begin a service to secure cryptocurrency currencies for projects and funds to provide management and liquidity," Hwang said.
Through the agreement, we will share many cases and experiences with BEPAL regarding the introduction of blockchain technology by the Chinese government and companies and jointly push for necessary technical support and entry into the Korean market," said Cho Sung-yeon, director of Hillstone Partners. Cryptographic data services are no different. Through custodian services, projects that have collected institutions, exchanges and funds can be free from cryptocurrency management, external theft or loss from hacking. This means that once custodian services are activated, a safer and more reliable market base will be created. Meanwhile, BEPAL, which signed an agreement this time, is a blockchain technology service company that provides blockchain technology and solutions to Chinese government agencies. The company's main business areas are blockchain technology, blockchain security, digital asset management and ecosystem building services. Based on this excellent blockchain technology, the company has developed and produced various digital asset wallets, including hardware wallets BEPAL PRO, BEPAL Q and BEPAL TOUCH, and has a number of awards including the 2018 'China's Best ColdWallet' and 'Best-Viewed Security Hardware in the Blockchain Industry'. BEPAL currently manages more than 100 million yuan of digital assets, and provides high-quality asset storage services to individual and corporate customers. Source: Blockchain Valley::No.1 Korea Blockchain & Fintechh Media (http://www.fintechpost.co.kr)