The two finance technology start-ups Cashlink and Finoa announce their partnership today. By working together, Cashlink is expanding its offering to institutional investors to make venture capital investments even easier. While Cashlink offers an infrastructure for issuing and investing in digital securities, Finoa can be selected, in particular for institutional investors, as depositary for the tokenized securities that Cashlink represents for its clients.
The partnership primarily serves institutional investors, such as venture capital funds, asset managers and family offices, who wish to have their digital securities held by a third party via a so-called custody wallet.
These are particularly suitable for investors who are investing in a digital asset for the first time and who have no previous experience in the safekeeping of digital securities in the blockchain environment.
The start-ups that issue digital securities through Cashlink are also benefiting from the collaboration between the two companies: simplifying the investment process will provide investors with a pleasant user experience that reflects the innovativeness of the young companies. The Cashlink co-founder and managing director Michael Duttlinger emphasizes the importance of the partnership for the ecosystem around digital assets:
Through the cooperation with Finoa, we complement our offer for institutional investors. This is another important step to strengthen the ecosystem and make digital assets easily accessible.
Analogous to a traditional online banking account, the user uses a browser application to access his stock of digital securities and can only access them inServe combination with the delivery of his biometric fingerprint via a separate smartphone application.
In addition, this innovative mechanism enables the simple application of multi-signatures, ie the release of transfers by one or more persons, to make the handling of digital securities even more secure and to meet the requirements of institutional investors. The key to digital securities, the private key, is secured physically inaccessible and cryptographically secured, providing maximum protection against hacks, phishing, and other types of fraud.
In doing so, Finoa assures users of automatic compliance with all regulatory guidelines such as PSD2 (Payment Services Directive 2) or EBICS (Electronic Banking Internet Communication Standard). Thus, access to the assets issued by Cashlink is very straightforward, fast and yet well secured.