Trust and custody services provider Legacy Trust is spinning out a new business focused entirely on institutional-grade cryptocurrency custody solutions.
Called First Digital Trust, the company will serve to grow Legacy Trust’s existing digital asset custody arm as a separate entity with its own unique partnerships and shareholders.
According to a Wednesday press release, this will allow Legacy Trust “to focus on its traditional trust and pensions business while giving First Digital Trust the flexibility to innovate in its delivery of digital asset custody.”
Speaking the broader goals of First Digital Trust, COO of the company Gunnar Jaerv, who also heads Legacy Trust’s digital asset division, said:
“Legacy Trust was the perfect incubator to develop the digital asset business we are now spinning out into First Digital Trust. We are bringing an unparalleled level of experience to a space that lacks trust, and intend to set the industry standard for compliant and transparent custodianship of digital assets.”
Already, Legacy Trust has a proven track record of offering clients institutional custody solutions for bitcoin and ethereum-based ERC-20 tokens. Earlier this month, it also announced offerings for cryptocurrency-based pension plans for participating firms and the self-employed.
All of Legacy Trust’s existing cryptocurrency custody solutions will be transferred to First Digital Trust, which is currently going through licensing with the Hong Kong government. Newly instated director and CEO of First Digital and CEO of Legacy Trust Vincent Chok estimated the company would be fully compliant and licensed under Hong Kong regulation by late November or December.
Speaking to the early plans for the new entity, Chok said First Digital Trust will offer clients not only cryptocurrency custodian solutions, but services to convert and divest holdings of cryptocurrency into other asset classes.
“Our theme is going beyond custody. If a client deposits bitcoins … we can convert that bitcoin into other assets classes. For example, first to fiat. Then, we can purchase real estate for you under your trust account. We can purchase stocks. You can maneuver into very different asset classes starting with cryptocurrencies.”
As such, Legacy Trust envisions the accumulation of $28 billion-worth of digital assets in the custody of First Digital Trust within the first three years of its launch.
In order to fuel these growth plans, First Digital Trust is looking at raising $15 million from venture capital funds over the coming months.
“As the industry continues to develop at a rapid pace, we must stay agile to keep abreast of regulatory and asset change,” said Chok. “Legacy Trust has always prided itself on offering a reliable and secure service, and we’re excited to develop this in our new business, First Digital Trust.”
Vincent Chok at Invest: Asia image via Christine Kim for CoinDesk