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Hong Kong-based asset custodian Legacy Trust announced that it will launch a new and independent business to accommodate its growing digital asset custody services.
Dubbed as the First Digital Trust, the new business will enable Legacy Trust to concentrate on its traditional trust and pensions business while giving the new spinoff the flexibility to deliver digital asset custody.
“As the industry continues to develop at a rapid pace, we must stay agile to keep abreast of regulatory and asset change. 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, Legacy Trust CEO and First Digital newly instated Director and CEO, said, as quoted by Institutional Asset Manager.
Notably, First Digital Trust will still be connected to Legacy Trust, but it will be a separate entity that will form its own unique partnerships and sustainably grow returns for shareholders. This means First Digital can learn from Legacy’s 27 years of custody experience and at the same time enjoy the freedom to expand and focus on emerging issues of securing digital assets.
“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,” Gunnar Jaerv, the COO of Legacy Trust and head of the firm’s digital asset division, said.
According to the report, the new venture also aims to raise funds to fuel growth plans. Citing sources with knowledge about the matter, the report revealed that First Digital Trust is in talks with venture capital funds to raise $15 million in the coming months.
If successful, First Digital Trust is projected to have $28 billion worth of assets in custody within the next 3 years.
Earlier this month, Legacy Trust revealed that it is going to offer digital assets-based pension plans for employees of participating firms and the self-employed. As previously reported, the underlying portfolio will include cryptocurrencies and fiat currencies.
