Bank Frick allows direct investments in leading cryptocurrencies
28. Feb. 2018
Bank Frick is the first financial institution in Liechtenstein to offer the trading of five leading cryptocurrencies and secure safekeeping via offline storage. Trading takes place within the fully regulated framework of the Bank’s processes. The offering is aimed at professional market participants and financial intermediaries.
Balzers (LI) – Starting today, professional market participants and financial intermediaries are able to invest in the five leading cryptocurrencies Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP) and Ether (ETH) at Bank Frick. The cryptocurrencies can be bought using euros, US dollars and Swiss francs. Trading takes place once a day.
Strong protection against hackers and theft
Bank Frick offers a particularly high level of protection against the loss or theft of crypto-assets. At Bank Frick, cryptocurrencies are held in “cold storage wallets”. Cold storage wallets are physically separated from the Internet and they therefore cannot be externally hacked. The wallets and their backup copies are held securely on a georedundant basis.
Regulation as strict as for traditional banking
At Bank Frick, cryptocurrency investments are subject to the same strict statutory measures as traditional financial transactions. Bank Frick is a fully regulated bank under Liechtenstein and European (EU/EEA) law. Clients can only invest in cryptocurrencies once they have been fully identified and verified. The verification and identification process also involves checking the origin of the money used to invest in them.
Key European address for crypto business models
“Our services are in demand from companies across the whole of Europe. This is because they know that we can offer them reliable support in implementing their business models with cryptocurrencies and blockchains in line with the existing regulatory framework,” Chief Client Officer Hubert Büchel explains. “We aim to place crypto-banking on at least the same level of quality as traditional banking.”
Attractive product for financial intermediaries that adds value
“Financial intermediaries, such as asset managers and fiduciaries, can make use of our new offering to successfully differentiate themselves in the market and add value for their clients,” emphasises Chief Client Officer Hubert Büchel. “With these direct investments, intermediaries and their clients can easily get to know a new, exciting universe and diversify their portfolios. Investments in cryptocurrencies are highly speculative and so they should form only a small part of a portfolio.”
Under the aegis of its future-oriented digital strategy, in September 2017 Bank Frick became the first bank in the CHF area to launch a cryptocurrency basket tracker based on BTC and ETH. The increase in value since then has been 238 per cent (price as of 27 January 2018). The highest point was reached on 10 January 2018 with 367 per cent.
About Bank Frick
Bank Frick is a family-run Liechtenstein bank with headquarters in Balzers. It was founded in 1998 by Kuno Frick Sr (1938–2017), with the majority now controlled by the Kuno Frick Family Foundation. Minority shareholder Net 1 UEPS Technologies, Inc. (Net1), holds 35 per cent of Bank Frick’s share capital. Net1 is a financial technology company listed on the Nasdaq stock exchange in New York.
Bank Frick focuses on providing products and services for financial intermediaries such as fiduciaries, asset managers, payment service providers and fintechs.
Bank Frick develops tailor-made funds for intermediaries and acts as a custodian bank.
It is the only bank in Liechtenstein with acquiring licences from Visa and MasterCard.
Bank Frick employs around 90 members of staff and operates a branch in London, UK.