фото показано с : btcmanager.com

Northern Trust Corporation, a 129-year-old Chicago based investment management, asset, and administration company plans to enter into the fast-evolving crypto business, according to a Bloomberg report on July 31, 2018. The aim is to provide custodial services to safeguard crypto assets in the digital space at comparatively lower fees.

The company has begun to develop its methods to secure the digital assets/cryptocurrencies in a faster, cheaper and secure way. Given the experience Northern Trust Corp has, it’s a significant opportunity for them to enter into the crypto space and compete in the market. According to Head of Corporate and Institutional Business and President of Northern Trust’s Corporate and Institutional Services, Pete Cherecwich:

“The fees right now the custodians are charging are pretty high, not the same fees that we get. [Ultimately], I believe unsustainable, because it needs to be an efficient model.”

Companies like Coinbase accept clients with minimum $10 million and $100,000 setup fees and monthly fees of basis 10 points ( 0.1 percent).

The company has expanded its scope in blockchain technology and cryptocurrencies across many fields. The company has $10.7 trillion in assets under the custodian service and administration. It has grown its fund administration services considerably to cover hedge funds.

The new project which Northern Trust has been working on was unreported previously due to a non-disclosure agreement. The project involves three “mainstream hedge funds.” Cherecwich explained that this mainstream hedge fund was a diversified portfolio which pooled investments in the form of cryptocurrency.

In an exclusive interview with the Forbes, Pete Cherecwich said that for the time being he couldn’t disclose the name of his clients. But he described the service which the company intends to provide.

From the beginning of this year, Northern Trust has been providing services to several hedge funds in ascertaining the difference in the actual amount and the amount recorded under customers cryptocurrency custodian. As a part of fund administrative functions, it helps to value the investment and file the same for its’ clients.

Cherecwich said that for now, Northern Trust is not undertaking the direct custody of cryptocurrencies, and doesn’t expect to do so anytime soon either. But he added that his company would be concentrating to help customers in their cryptocurrency investment. He added that:

“I do believe that governments will ultimately look at digitizing their currencies, and having them trade kind of like a digital token — a token of the U.S. dollar — but the U.S. dollar [would still be] in a vault somewhere, or backed by the government, How are they going to do that? I don’t know. But I do believe they are going to get there.”

Previously, Cherecwich worked at State Street for about 20 years before becoming a part of Northern Trust.

The post Northern Trust all Set to Enter Crypto Custody Business appeared first on BTCMANAGER.

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