In this pandemic time, many Asian countries are seen adopting blockchain technology to secure their data via the Internet against hackers and cyber thieves. With the rise of Bitcoin, Ethereum, and other stablecoins- people are often seen involved in many custodian asset management plans. Today, these plans are a better way to set a matrix for security and vitality of the right use of assets at the right place. On the contrary, these plans also act as the record keeper that provides timely account reports outlining your holdings and transactions as a part of the crypto payment service online. While making the payments with stablecoins and tokens, it's always necessary for you to keep a check on your finance flow for the right reasons. You never know which multiple currency use with OTC trading prospect may do the perfect alignment for your digital asset use.

There is no denying that today's many people believe that's it's essential to understand that the responsibility a custodian holds is independent of the particular asset management. If we remain diligent in going through asset reports from our custodians and ensuring our custody services are kept separate from the esteemed benefit, we can surely reduce the chances to make a better one-time investment to have a go through for the right solutions.

Which are some of the critical process that matters in custodian asset management plans?

Regulatory Transaction Reporting

One complexity is that of transaction reporting. Where products are trading on an exchange, often, the exchanges will do the reporting for you. However, you need to make sure that's the case, and if they don't report everything, you'll need to plug the gap somehow. In the light path, we have this alluringly simple pattern: For OTC, it gets more complicated! In some cases, the regulators will be explicit about who has the responsibility to report a transaction. Again this becomes a co-ordination problem where we need to ensure that one, but not both of us report the transaction.

3rd Party Systems for Trade Order Lifecycles

Sometimes an asset Manager will use a third party system to manage their orders and transactions. Smaller asset managers may use a product like Bloomberg AIM instead of building it all themselves, which is not cheap. As with most FinTech decisions, however, there is a trade-off; get to market more quickly and live with more operational complexity.

Daily pricing

There is an excellent security level provided by the custodian holding the assets, and even just ensuring that the money is being invested as agreed is very assuring.

With all proper regulations come complexities! What happens if an instrument isn't liquid, and there isn't a distinct price discovery mechanism. This could be simple as a bond that doesn't trade often, but it could also be something like a derivative with complicated pricing methodologies. This leads to situations where the custodian and asset manager may disagree on prices, impacting the reporting of the market value of a portfolio. Generally, any pricing issues shake themselves out when money has to be transferred between counterparties, but this issue becomes emotive on key calendar dates.

Final Thoughts

Hence, if you, as a user, are looking for comprehensive information on the integration of custodian asset management plans in a perfect way, never miss connecting with Wallex Custody!