BFI Group Blog

Stay informed about the news at BFI and in a world of rapid change

Daniel Zurbruegg
March 17, 2021

The Crypto-Fiat Currency Gap is Closing

BFI is just weeks away from offering investment mandates that will be able to include crypto allocations. A growing number of solid and reputable international banking institutions have largely closed the gap between fiat- and cryptocurrency-based investing. They have also moved beyond mere single-investor online applications to IT solutions that allow investment professionals and firms to manage crypto assets for their clients, in sync with their traditional investment portfolios.

Online banking, to some degree, has become an expected standard for private banks for a long time. It allows online trading for individual investors as well as professional investors and investment advisory firms. The tools for investment firms include such things as portfolio consolidation, batch orders for their clients, reconciliation and reporting tools. This, however, until recently, was limited to traditional securities and fiat currencies only. In other words, the custody and trading of cryptocurrencies and crypto assets was not integrated into those tools.

Now, a growing number of banks have expanded into the crypto investment world, fully regulated under the respective banking rules of their jurisdiction. In addition, with their online banking offering, licensed investment advisory firms benefit from mass subscriptions and professional trading tools for their customer base and the execution of block orders when trading crypto securities.

The custody and transactional tools and infrastructures have evolved and reached a level that BFI is now confident in and we will be able to start offering mandates to clients who are interested in integrating crypto allocations into their overall wealth management portfolio.

We were hesitant to offer this particular service for some time, as we wanted to first ensure that the tools and infrastructures offered by the respective banks regarding these assets were solid and reliable. And indeed, not being amongst the first movers was a good thing. In the early days, there were some noteworthy, albeit manageable, glitches. At this point, however, we feel comfortable entering the arena and I am quite excited about this very positive development.

The first step toward change is awareness. The second step is acceptance. ~ Nathaniel Branden

This is a very new asset class that requires specialized and focused attention. Therefore, as we can integrate the service, we will endeavor to cooperate with expert partners on such mandates.

,>> Contact our team at BFI Infinity for more details and information.

Download PDF Blog Post
Download • 288KB