MJ Hudson, the end-to-end solutions provider to the asset management industry, has introduced a new custody benchmarking service specifically for clients investing in digital assets.
The new service will benchmark the capabilities of major custodians for key themes across digital asset custody provision, including, but not limited to, strategy & commitment, digital asset coverage, fraud prevention, private key management, reporting, governance, legal, regulatory approvals, and custody fees.
2022 has seen a big upheaval in the investment ecosystem with the growth in digital assets. Behind this development are institutional investors increasing their exposure to the new digital asset classes. Consequently, all major custodians are spending significant resources on developing their digital asset custody platforms to meet the demand.
MJ Hudson Managing Director, Tom Robertson, commented: “With the digital asset market rapidly maturing, and with the regulatory environment in Europe and the US becoming clearer, asset managers and asset owners are moving at pace to ensure they are not left behind the curve, which has already seen leading firms such as BlackRock, Morgan Stanley and Goldman Sachs adding cryptocurrencies to their portfolios.
“As this is a fast-evolving environment, the challenge for institutional investor firms is to understand the nuances in custody between traditional and digital assets, and to adopt a robust solution that best meets their own and their investors' requirements in safeguarding the assets against loss or theft.”
For the past 20 years, MJ Hudson’s custodian bank benchmarking team (formerly Amaces) has been supporting clients in the search and selection of custody providers for traditional assets. MJ Hudson will now work with clients and the wider market to support them in the search and selection process for firms wishing to appoint a specialised digital asset custodian.
Tom Robertson added: “There is a stark contrast in how digital assets are held in custody compared to traditional assets. By extending MJ Hudson’s existing benchmarking services, we can address an increase in demand to provide the market participants with greater confidence when considering how digital assets are held securely within the custody environment, and how to choose the appropriately qualified custodian”.
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ABOUT MJ HUDSON
MJ Hudson (AIM:MJH) is the end-to-end solutions provider to the asset management industry, specialising in private markets and alternative investments. The firm helps fund managers and investors run more smoothly and perform at their best, through an integrated suite of advisory, outsourcing and analytical services, supported by a range of sophisticated digital tools.
MJ Hudson’s team of more than 350 lawyers, fund accountants, ESG consultants, developers and other professionals, serves more than 1,000 clients, across the globe, including some of the industry’s largest players.
Founded in 2010, by CEO Matthew Hudson (a private markets lawyer and former fund manager), MJ Hudson was admitted to the AIM market of the London Stock Exchange in 2019.
ABOUT MJ HUDSON CUSTODIAN BANK BENCHMARKING TEAM
MJ Hudson’s Custodian and Bank Benchmarking team is a specialist provider of operational benchmarking services, based on empirical results and tailored specifically to the needs of institutional investors.
The services enable clients to understand the relative service quality and value for money they receive from their service providers, both in absolute terms, and relative to their peers. This helps clients maximise the value and quality of the services they receive, across multiple services, fund types and jurisdictions.