Liechtenstein Bank Offers “Direct” Cryptocurrency Investment And “Cold Storage” Wallet

Liechtenstein-based Bank Frick is offering clients the ability to purchase cryptocurrencies – with a promise of protection against hackers. Five currencies will be offered primarily to “professional market participants and financial intermediaries,” according to Frick; Bitcoin, Bitcoin Cash, Litecoin, Ripple and Ether.

“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,” explains Chief Client Officer Hubert Büchel. “Our goal is to bring crypto banking at least to the level of quality of classic banking.”

To safeguard the cryptocurrenices, Bank Frick offered so-called “cold storage wallets,” which are physically isolated from the internet and cannot be hacked from the outstde. Backup copies of the wallets are stored in a “geo-redundant and secure manner.” 

Bank Frick – a fully regulated bank according to Liechtenstein and European (EU / EEA) law, says they apply the same strict legal standards as traditional financial transactions. Notably, they will conduct due diligence to determine “the source of funds” as part of the process to vet clients eligible to participate. 

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,” emphasizes Chief Client Officer Hubert Büchel. “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.”

In September 2017, Bank Frick was the first bank in Switzerland to launch a cryptocurrency basket tracking certificate based on Bitcoin and Ether – which had increased in value by 238 percent by the end of January. 

Bank Frick is hardly the first European institution to offer crypto-based products. 

the move appears to copy neighboring Switzerland, where institutions Vontobel and Falcon Private Bank have been offering exposure to crypto investments since as far back as 2016.

Elsewhere in Europe, The Netherlands’ Rabobank this month hinted it may shortly begin offering cryptocurrency storage for cardholders via a product called ‘Rabobit.’ A dedicated website about the project has appeared, though staff have also noted on social media that a final decision on its release has yet to be made. –cointelegraph

Bank Frick is a family owned institution founded in 1998 by Kuno Frick senior, and controlled by the Kuno Frick Family Foundation (KFS). The bank strategically focuses on services and products for financial intermediaries such as trustees, asset managers, payment service providers, fund promoters and fintechs.

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