Forming a consortium among banks and banking solution providers to cover custody, settlement systems, and distribution integration, aimed at promoting a trusted/custody-based tokenization platform

HONG KONG, March 18, 2024 /PRNewswire/ — Aegis Custody, a member of Cyberport Community, and the world’s only regulated and licensed digital asset custodian in both United States and Hong Kong and a custody technology solution provider, has concluded the first successful digital asset custody demonstration conference at Hong Kong Cyberport, from March 11-15, 2024 to more than 10 banks operating in Hong Kong. The conference in strategic partnerships with Cyberport, FORMS HK, Infocast, Keptain Group, Syndicate Capital, Systex, and Thales, showcased the market leading practice and technology how financial institutions can safeguard digital assets in a compliant way.

Aegis has given a demonstration to 11 banks operating in Hong Kong, which include one U.S. Merchant Bank, five Chinese banks, three local banks and two virtual banks showcasing the digital asset custody solution and operation. According to the data of their financial year of 2022, the total assets managed by these banks was approximately HK$23.01 trillion.

In addition, in order to enhance the technological and operational capabilities for banks in the digital asset space, Aegis Custody has been focusing on promoting the integrated digital asset tokenization solution for the trustee/custody framework for cryptocurrencies, tokenized securities, stablecoins, and Wholesale Central Bank Digital Currency (wCBDC).  Aegis Custody has formed a consortium with several banks and banking solution service providers to promote a tokenized platform that combines HSM custody technology, interbank and CMU settlement systems, and integrates brokerage distribution networks to create a trustee/custody-based tokenization framework in Hong Kong.

Serra Wei, Founder and CEO of Aegis Custody said, “The overwhelming response to our custody demonstration conference highlights the strong market demand for future readiness. To bridge the technicality gap, Aegis Custody has partnered with FORMS HK and multiple banks to establish a bank consortium. The initiative aims to equip consortium banks with necessary systems, expertise, and operations for engaging in digital assets and the seamless process of converting real-world assets and financial assets into digital tokens. The platform also allows banks to issue their tokenized securities and serves as a testbed for exploring different tokenization use cases, demonstrating the industry’s readiness and collective support for digital transformation.”

Building on this initiative, that is supported by Cyberport, and to showcase the potential solutions to intermediates, particularly the banking and financial sector, as well as other stakeholders in the digital assets ecosystem. Georgina Chu, Chief Corporate Development Officer of Hong Kong Cyberport stated, “As the largest FinTech and Web3.0 community in Hong Kong, Cyberport is committed to driving the transformation of financial industry into Web3.0 era by enhancing services and products within a secure and regulated environment through technology adoption. We are delighted to support the initiative led by Aegis, a Cyberport incubatee, to further enrich digital asset ecosystem and foster collaboration within the industry. Cyberport will continue to nurture the development of digital asset and tokenisation through initiatives such as Web3 PoC Scheme and the wCBDC sandbox, ultimately facilitating the high-quality growth of Hong Kong’s digital economy.”

Furthermore, Albert Yip, Co-Chair of Aegis Hong Kong, and Chairman of Syndicate Capital Group, commented, “One of Aegis Custody’s mission is to build a blockchain-based Digital Assets Solutions Hub (DASH) by providing “independent trust and custody solutions” to VASPs, exchanges, banks, financial institutions and professional investors to ensure investor protection for digital assets. Syndicate Capital Group is the Investor Champion and Corporate Champion of Global Fast Track, which is initiated by the Hong Kong Government SAR in supporting the fintech ecosystem and CBDC development. We are delighted to support Aegis to collaborate with reputable market leaders.”

The collaboration between Aegis Custody and FORMS HK will help drive innovation and promote the adoption of digital assets within Hong Kong’s financial industry. Alex Chan, CEO of FORMS HK, commented “By leveraging our expertise in technology and financial solutions, we aim to revolutionize the way digital assets are stored, managed, and traded. Together with Aegis Custody, we will create a robust ecosystem that fosters trust, security, and efficiency in the digital asset space. We believe that this collaboration will contribute to the continued growth and development of Hong Kong as a global hub for digital finance.”

Hong Kong Government has shown its ambition to establishing the city as a global digital asset hub. Embracing digital asset custody has become a strategic necessity for businesses and banks to diversify their offerings, retain customers, and maintain a competitive edge in the rapidly evolving digital financial sphere. The recent issuance of Hong Kong Government’s second tokenized green bonds signalled a potential opportunity and significance of fostering greater involvement from local banks in the realm of digital securities. “Enabling retail access to tokenized assets and collaterals for tokenized assets will further enhance Hong Kong’s financial ecosystem”, was said by Felix Li, Project Director of Infocast. 

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About Aegis Custody: 

Aegis Custody, as a qualified custodian through its affiliate Aegis Trust in the United States, provides high-quality custody solutions for institutional clients globally. Aegis Custody also offers custody technology solutions under regulators’ guidance for digital asset custody in Hong Kong with a focus on security, innovation, and excellence.
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