Huobi Institution has launched a digital asset management platform and custody services for institutions. The platform matches qualified institutional investors and high-net-worth individuals with fully-vetted quantitative trading teams in a secure and reliable environment managed by Huobi. Huobi’s new custody services will ensure safe deposits of assets and provide asset settlement and delivery for all transactions and engagements on the platform.
Huobi says the launch of its asset management solution underscores a continued shift in the digital asset market as more institutions and traditional asset managers turn to cryptocurrencies to create arbitrage and hedge macroeconomic risk.
“As the crypto market expands globally, we’re seeing growing demand for more nuanced trading products and services, especially from the institutional sector. These investors want access to high-quality quantitative investment platforms but up until recently the market has been highly fragmented,” says Ciara Sun, Vice President, Global Markets at Huobi Group. “By bringing both sides of the market together in one platform, we want to build the bridge between traditional financial markets and the digital asset economy.”
With the new offering, Huobi aims to help institutions access high-quality quantitative investment channels—managed by top cryptoassets managers and quantitative trading teams and backed by Huobi’s industry-leading security and risk controls. In addition to an expansive network of rigorously vetted cryptoassets managers, Huobi’s asset management platform offers a comprehensive product ecosystem, including custody services, asset storage via Huobi Wallet, and customized cryptoassets products with a fully-managed service, including data analytics and third-party performance disclosures and ratings.
All cryptoassets managers and trading teams on Huobi’s asset management platform undergo a rigorous vetting process, including full company disclosures, and must have a proven track record trading on Huobi’s exchanges for a minimum of six consecutive months. Quantitative trading teams must also provide historical transaction data as part of an extensive audit by Huobi, which includes a deep analysis of historical positions and trading activity to determine the team’s actualized performance and risk management ability. Cryptoassets managers are required to deposit a percentage of the cryptoassets as an investment risk margin based on product type and associated risk levels.
Huobi will offer investors customised cryptoassets products based on personalised investment requirements and risk preferences, including Fixed Return Plan, Capital Protected Plan, and Capital at Risk Plan. Investor’s assets are escrowed in Huobi Wallet to ensure asset safety, and trading strategies are restricted to mature products in top exchanges only.
As the platform operator and administrator, Huobi will be responsible for project registration and consignment, investment confirmation, client account management, and asset liquidation and settlement. Project assets are managed in Huobi accounts and support cross-exchange strategy and execution. Investors retain full ownership of their assets at all times and cryptoassets managers are granted access only to trade those assets. Huobi will also report all investment performance data to investors on a regular basis.
Huobi’s cryptoassets management platform also brings more transparency to digital asset management by providing an objective evaluation system of net (cryptoassets) value, which allows investors to track true ROI. The platform’s monitoring system connects to APIs provided by cryptoassets managers and trading teams across multiple exchanges to measure cryptoassets value and ROI in real time. Cryptoassets products on the platform are also monitored for risk indicators like leverage ratio, drawdowns, and deposits and withdrawals to limit exposure and establish a liquidation mechanism as needed to protect investors.
At launch, trading platforms supported include Huobi, Okex, and Binance. Trading products supported include Spot, Cross Margin, Isolated Margin, Futures, and Perpetual Swap, but leverage for Futures and Swaps will be limited to 20x or lower. Assets supported include USDT, BTC, ETH, EOS, BCH, LTC, TRX, ETC, XRP, ADA, DASH, ATOM, BSV, XLM, and ZEC.
