Some time ago, the news that the Liechtenstein Financial Market Authority had approved the first crypto-asset-based fund regulated in Europe caused quite a stir. The Liechtenstein bank Frick is sympathetic to blockchain technology and serves as custodian for the Postera and other crypto-asset-based funds. An interview with Hubert Büchel, CCO of Bank Frick.
A few days ago, BTC-ECHO wrote about regulated crypto funds. Various interviews show that the Old Economy is also showing more and more interest in crypto currencies. In this respect, Liechtenstein seems to become an increasingly important location in Europe, as the statements of Prince Michael von und zu Liechtenstein show. Thanks to the Savedroid debacle, the Liechtenstein bank Frick has also become better known in crypto circles. To say the least, Yassim Hankir’s PR stunt was not fully thought through, but Bankhaus Frick’s response was sovereign, calm and appropriate:
“All funds invested in the ICO of savedroid AG are safe and could not have been deducted under any circumstances due to fiduciary diligence. Bank Frick does not understand the PR stunt of savedroid CEO Yassin Hankir and prefers to work with professional market participants”.
Both this form of reaction and the fiduciary custody of the funds acquired by the ICO show that the Liechtenstein bank knows the crypto market.
Depository for Bitcoin revolution crypto assets
Hello, Mr. Büchel. Can you explain to us exactly what a cryptographic asset depository is? Similar to traditional banking, it is basically a matter of keeping assets in safe custody. However, while humanity has learned over thousands of years to assess analogous values and risks, purely digital Bitcoin revolution crypto assets present us with new challenges. At worst, Bitcoin revolution can be irretrievably lost. Conventional approaches focus primarily on protecting against natural risks, accidents or unauthorized access. Bank Frick has unique expertise worldwide, not only in making known risks manageable, but also in countering political risks. Our customers have it easy: The traded assets are booked via the custody account or accounts like a normal stock exchange transaction.
What security precautions do you take as a bank for Bitcoin loophole crypto assets?
Security means the integrity of private keys at all costs and limiting access as much as possible. We ensure the integrity by means of geo-redundancy. The restriction of access takes place at the expense of availability, but reduces the risks to a minimum. Technically, we make remote access impossible through permanent physical isolation and multiple encryption. Bitcoin loophole transactions only take place in a high trust environment and require several persons. We also have a very good Bitcoin loophole monitoring system and can react quickly to changes.
A huge potential
What do you think of the scepticism of other banks? We do not share the skepticism of other market participants. What we can say is that the great interest shown by investors and the steadily growing number of applications of the core technology behind it testify to the enormous potential of a market that is just emerging – especially for regulated products and services on the blockchain, which we as a bank are already offering. Of course, we understand that such leaps in technology are sometimes viewed “cautiously”.
What projects is Bank Frick planning in the crypto-asset area?
At the moment, Bank Frick is paying a lot of attention to the tokenisation of classic assets. A token represents the value of the underlying assets. Here the difficulty is still in trading. Since these are security tokens, tradability is only possible via corresponding providers who are authorized to do so. We are therefore very curious to see how the market of Exchanges and Brokers will change in the future. […] Our focus here is on the development of AlF funds and with the Postera Fund we have co-developed the world’s first crypto fund, which is designed in accordance with European law. Our Payment Service Provider team is also interested in the optimization of payment solutions based on the Blockchai