Swiss Association Introduces New Standards for Crypto Custody
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April 30, 2020
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The Capital Markets and Technology Association (CMTA) of Switzerland has just published new standards for the custody and management of digital assets.

The standards, which the CMTA defines as a series of requirements and recommendations for tech solutions enabling the custody and management of digital assets, were presented yesterday under the "Standards for the Custody of Digital Assets" document.

Their aim is to clarify the differences between the storage of cryptocurrencies and traditional assets, as well as establish the basic security and operational requirements that all institutions in the industry must comply with.

The CMTA is an independent, non-profit association established in Geneva back in 2018 to promote the adoption of technologies such as blockchain and digital assets in the financial markets.

These new standards are only the first step towards the adoption in Switzerland of a common approach for the management and custody of digital assets.

One of the most relevant aspects of these new standards is the difference between the storage of digital assets and that of traditional assets, as the latter relies on centralized systems, while digital asset storage requires the use of decentralized technology.

However, the standards go one step further, as they also praise the benefits of the adoption of digital assets in the financial markets. According to the CMTA, blockchain can enable SMEs to issue and trade securities on decentralized platforms and to use disintermediation and new digital infrastructure to access markets that are normally reserved for larger market participants.

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