The Swiss Capital Markets and Technology Association has revealed standards for the storage and management of digital assets, aimed at explaining the differences from the storage of traditional assets and establishing recommendations for custodians.
Securing private keys is essential for investors interested in digital assets //t.co/0HKSyMENnq
— CMTA (@cmta_ch) April 30, 2020
The Capital Markets and Technology Association was established in Geneva in 2018 as a non-profit organization that has the goal of promoting the introduction of blockchain and digital assets in financial markets.
The document presented by the Association represents the first step of the Swiss financial industry towards reaching consensus on common standards for the storage and management of digital assets.
Fedor Poskriakov, General Secretary at the CMTA and Partner at Lenz & Staehelin, explains: “The digitalization of the capital markets infrastructures is accelerating. In that context, the launch of the “Digital Assets Custody Standard” represents a key milestone, as it is the first initiative of the Swiss financial industry to agree on a common standard for custody and management of digital assets. This will greatly contribute to the emergence of fully digital capital market infrastructures, including integrated custody and secondary trading venues. The benefits of the digitalization of the financial industry are such that the evolution towards decentralized infrastructures seems inevitable.”
The organization indicated that, compared to traditional assets and its centralized custodians, digital asset investors need more serious guarantees that the decentralized storage infrastructure is robust against loss, theft, or hacking.
According to the document, blockchain technology can simplify and democratize the process of attracting financing by small and medium-sized businesses. Such companies will be able to issue securities on decentralized platforms, while traditional markets often put insurmountable barriers for such initiatives.
The standards published by the organization don’t have any legal power and reflect a consensus among financial sector experts regarding best practices in digital assets industry.