First financial institution in the world, Bank Frick to open up to crypto-banking

Bank Frick, an independent family-run bank in Liechtenstein has made the announcement on Wednesday that they will be accepting investments and starting trades in cryptocurrency. The transactions of crypto-valuables can be carried out only in Euros, US dollars, and Swiss franc.

This is the first time ever any bank has opened up for investments and transaction directly with the top five digital cryptocurrencies BTC, BCH, LTC, XRP, and ETH.

Hubert Büchel, the Chief Client Officer stated,

“With our new offering, financial intermediaries such as asset managers and trustees can successfully differentiate themselves in the market and offer their customers added value. Intermediaries and their clients can easily get to know a new, exciting universe with these direct purchases, diversifying them and investing them without correlation to other asset classes. Investments in cryptocurrencies are highly speculative, which is why only a small amount of admixture in the portfolio is advisable.”

It is also the first bank to launch a cryptocurrency basket tracker certificates, based on Bitcoin and Ether back in September 2017. As of January 2018, the value has been increased to 238%.

Financial intermediates and investors can invest only once a day through the Frick platform.

Although some of the bank like Cornerbank, Falcon, IG Bank, Leonteq, Swissquote and Vontobel already offer similar services in Switzerland, they do not readily accept investment in cryptocurrency.

To invest in cryptocurrencies in Bank Frick, the same strict legal standards are applied as in traditional banking. According to the Liechtenstein and European (EU/EEA) law, Bank Frick is a completely automated and regulated bank. The strict standards also state that only identified and audited clients have the opportunity to invest in cryptocurrencies in their bank, and the origin of the client funds have to be reviewed and speculated in the process.

Hubert Büchel also mentioned,

“Our services are in high demand from companies across Europe. The companies know that we reliably support them in implementing their cryptocurrency and blockchain business models in accordance with existing European regulations. Our goal is to bring crypto banking at least to the level of quality of classic banking.”

Bank Frick has also introduced what they call ‘cold storage wallets’, these are physically isolated and kept separated from the world wide web so they are offline and cannot be accessed outside the bank servers. The wallets and their backup copies are stored in a geo-redundant and secure manner.

The bank’s aim is to bring crypto banking to the level of traditional banking, in both quality and security.

This marks a huge opening for a vast amount of opportunities for the blockchain and cryptocurrency industry aimed at professional market participants and financial aggregators.

Bank Frick also stated that they would be accepting more forms of digital cryptocurrencies in the near future, they are proving to be a haven for blockchain startups and ICOs due to their proactive effort on these emerging technology. 

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