Digital Wealth Partners (DWP) has announced a significant expansion of its digital asset platform to include custody services for Hedera (HBAR), responding to increasing client interest in this cryptocurrency. Through a strategic partnership with Anchorage Digital, DWP clients can now securely custody HBAR alongside other established digital assets such as Bitcoin, Ethereum, XRP, Stellar (XLM), and Avalanche (AVAX). The launch of HBAR trading for clients is anticipated to occur in the near future.
The integration of HBAR custody is particularly notable given the regulatory framework surrounding Anchorage Digital Bank, the custodian for HBAR holdings. As the only crypto-native bank in the U.S. that operates under a national trust bank charter granted by the Office of the Comptroller of the Currency (OCC), Anchorage ensures that client assets are safeguarded under stringent federal oversight. This includes compliance with capital requirements and security protocols, making it a solid choice for institutional investors.
Anchorage Digital boasts impressive credentials, having achieved SOC 1 and SOC 2 Type II certification and processing 90% of its transactions in under 20 minutes. The platform is trusted by major institutions, including BlackRock, for their spot crypto ETF operations. While assets held at Anchorage are not insured by the FDIC or SIPC, they are covered under Anchorage’s own insurance policy that includes crime insurance, adding an extra layer of security for investors.
DWP added HBAR to its offerings based on a comprehensive evaluation of its governance and institutional use cases. Hedera, a public distributed ledger, is managed by a council of prominent global corporations including Google, IBM, Dell, and LG. The network is optimized for speed and cost-effectiveness, making it an attractive option for both individual and institutional investors. Notably, the ecosystem around Hedera has been gaining traction, with recent launches of ETFs and tokenized money market funds, as well as notable infrastructure developments such as Georgia’s migration of its land registry to the Hedera network.
This expansion into HBAR custody represents DWP’s commitment to providing clients with access to a diversifying digital asset landscape. Each asset offered by DWP is included after careful consideration, with HBAR being recognized for its robust institutional framework and growing demand among traditional finance sectors.
As interest in digital assets continues to rise, DWP emphasizes the importance of consulting with crypto financial advisors to navigate the complexities and risks associated with investing in HBAR or any other digital asset. The move to include HBAR also positions DWP to better serve its wealth management clients looking for broader diversification in their investment portfolios.
Max Kahn from DWP articulated the thoughtful approach taken in introducing new assets to their platform, highlighting the significance of Hedera’s governance and the infrastructure supporting it. With HBAR custody now operational, DWP is preparing to roll out full trading access, allowing clients to buy, hold, and manage their HBAR positions through the same qualified custodian securing their other digital assets.
In summary, DWP’s introduction of HBAR custody services marks a notable development in the wealth management sector’s engagement with digital assets, amidst a growing institutional interest and evolving regulatory landscape. Investors are encouraged to stay informed and consider the associated risks of digital asset investments as they navigate this emerging financial frontier.
