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