17 September 2019

Carey Olsen supports Zedra on cryptoassets offering

Carey Olsen has supported trust, fund and corporate services provider Zedra on the launch of its end-to-end solution for the purchase and sale of Bitcoin.

Zedra's entry into the digital assets market has come through a partnership with the Constellation Group, Vo1t Digital Custodian and the BCB Group, and further expands the company's fintech service offering. The offering sees Constellation acting as transaction manager, Vo1t as digital custodian and BCB providing onboarding, trade execution and settlement services.

The cryptoasset end-to-end solution will see the the buyer's fiat cash and the seller's Bitcoin held to the order of Zedra and governed by an innovative tri-partite escrow agreement containing the terms of the transaction. Following proof of funds and verification of the Bitcoin and satisfaction of the terms of the arrangement, the transaction will conclude. The Bitcoin is then transferred to the buyer and this can either be via internet-connected hot wallets, or it can be transferred utilising Vo1t's HSM cold storage custody platform.

As part of the implementation of this project, Carey Olsen senior associate Luke Sayer advised Zedra on the legalities attached to the acquisition, custody and security of cryptoassets to ensure the protection of both Zedra and its clients.

Luke commented: "I am delighted to have advised Zedra on this exciting project. It is another example of the increasing exposure in Guernsey to financial activities ancillary to cryptoassets."