Another crypto custodian is on the rise and its first client is a Foxconn subsidiary

San Francisco crypto custodian Aegis has strengthened its hold on the Asian market, announcing Hong Kong-based Fosun as the lead investor on its Series A and signing a major deal with a subsidiary of Taiwanese electronics manufacturing giant Foxconn, the company told The Block.

Launched in January, Aegis Custody is the first digital assets custodian solution to be backed by Asian institutional investors, following the close of its $4 million Series A on Tuesday. 

Aegis said it will provide "multi-layer" cold storage to "exchanges, asset management funds, STO projects and large institutions" in Taiwan and the U.S. which hold digital assets. Foxconn subsidiary ELICONN will be among its first major clients.

In the U.S. market, Andreessen Horowitz-backed Anchorage's solution is already live, alongside Coinbase, BitGo, Gemini, and DACC. But given the competition, fees for storing assets for institutions have been on a sharp decline there since 2018.

“Custodial solutions are expected to become the next wave of innovation to hit the crypto market...We believe Aegis Custody can disrupt a multi-trillion-dollar digital asset management market,” Fosun Group’s CEO Yang Shuo said.

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.