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Digital assets as a valuable extension of modern asset management

Digital assets such as crypto currencies and security tokens are a valuable addition to modern asset management and will be indispensable in the future. Entering this new financial world creates additional value for both clients and financial service providers, but also exposes the latter to new challenges. Mark Dambacher, CEO of InCore Bank AG, answers the most important questions and presents solutions.

Mark Dambacher, how is InCore Bank involved with blockchain and digital assets?

InCore Bank is the first Swiss business-to-business bank to offer financial service providers and institutions worldwide easy and secure access to this new digital asset class based on blockchain technology. Since June 2020, we have been enabling every bank and every family office to expand their range of services at a manageable cost in order to meet the growing demand for digital assets.

We will continue to expand our Digital Asset Banking Services and enable professional tokenization of assets. Through a digital representation of assets on the blockchain, previously non-bankable assets such as real estate or artwork are made bankable and tradable. In this way we open up these once inaccessible assets to a larger circle of investors through our client banks and create new investment opportunities.

The application of blockchain technology is promising not only in the areas mentioned. We also see a great deal of potential in operational banking processes. In this area, we are driving innovation together with our technology partners.

Digital assets are growing in popularity. What challenges does this pose for financial service providers?

If a bank wants to offer this new investment type to interested customers, it is faced with major challenges:

  • Employees on the front line must have expertise in the crypto sector in order to maintain the best possible support for their customers and to win new customers.
  • The bank must dispose of an adequate and secure technical infrastructure and sufficiently trained staff.
  • Costly extensions must be made to the core banking systems to enable the processing of crypto transactions.
  • Regulatory requirements, especially with regard to capital requirements and money laundering, must be taken into account.

For most financial service providers, these are enormous liabilities. InCore Bank is able to take them off their hands by providing the brokerage, custody and transfer of digital assets as a service - all while maintaining the usual security standards. In this way, we enable financial service providers an easy and risk-free entry into the innovative crypto world.

Can you describe this service in detail?

As with traditional assets, InCore Bank handles the entire transaction process for digital assets, including anti-money laundering checks. We also handle the settlement and clearing with the market. We can consistently segment the assets for our business clients at client level so that they do not require additional regulatory capital.

Because the processes are built into our proven core banking system, our client banks can offer the full range of services for traditional and digital assets from a single source without having to worry about processing, security and capital requirements. Their end customers can also manage their crypto portfolios conveniently via online banking - as simple and straightforward as traditional assets.

Furthermore we also support our customers with customized crypto trainings and access to our network of partners in the crypto sector.

With these Digital Asset Banking Services, InCore Bank builds bridges that offer added value for everyone - for financial service providers, trading platforms and private clients.

Here you can download the excerpt from the Tagesanzeiger supplement of November 20, 2020 as PDF (in German).