Prime Trust Eliminates Fees For Storing Cryptos
Prime Trust just made a very surprising move, one that will definitely pique the interest of clients. Basically, the company will no longer charge them just to custody digital assets. Here is everything about the Nevada-based firm’s decision.
$0 Charge
According to the official report, the company announced recently that it would lower its fee to $0 and it would be implemented effective immediately. This change is for storing digital currencies and is, in particular, directed to charges the firm does to custody stocks and/or bonds.
Prime Trust started its move to custody cryptocurrencies last year. This was particularly during the time when it offered cold storage services meant for Bitcoin, the world’s leading digital currency. Later on, the company expanded its service, offering custody to include altcoins like ERC-20 tokens, Ether, and Stellar Lumens.
Scott Purcell, the CEO and chief trust officer of the company, said that a “qualified custodian” does not exist in the traditional financial realm. This individual, according to him, does not even charge for safekeeping bonds, exchange-traded funds (ETFs), stocks, and mutual funds. The executive cited a handful of examples, which include JPMorgan, Northern Trust, and Etrade.
It should be noted, however, that the company does charge around $350 annually for real estate.
For Purcell, he does see why charging a custody fee for storing cryptocurrency should make sense. The move reportedly aims to conform to the normal price when it comes to the financial industry. He, however, claimed that the company was the first in the cryptocurrency space to nix custody fees.
No Free Lunch For Now
Purcell revealed that Prime Trust is capable of make revenue through its other sources. These should be enough for the company to make up for its decision to remove the aforementioned fees for digital currencies.
In fact, the CEO said that the firm could generate money in a way that is similar to Robinhood and Northern Trust. And that same with these tradition institutional custodians, they very cost involving custody are simply offset by other services provided.
For example, customers who decide to story digital currencies with Prime Trust are also fond of parking their fiat there. Through this, the company will not have problems earn interest just by keeping the latter.
As per The Clearing House, a banking association and/or payment firm can always include administration, lending, payments, and asset servicing. All of these are said to carry its own specific fee.