Digital assets are entering a new institutional phase. What began as a niche technology experiment among technologists has become central to boardroom discussions across banks, asset managers and policymakers. For Alessio Quaglini, CEO and co-founder of Hex Trust, the shift marks a turning point where secure, compliant and scalable infrastructure—not trading hype—will determine how blockchain integrates with the global financial system. “The role of the custodian has always been fundamental,” Quaglini said. “In digital finance, it is not only about safeguarding assets but ensuring that they remain fully segregated from the custodian’s balance sheet. That is what institutions trust.” This philosophy underpins Hex Trust’s rise as one of Asia’s leading digital-asset custodians. Founded in 2018, the firm has evolved alongside the industry’s transformation—from speculative cryptocurrencies to tokenised real-world assets (RWAs) and stablecoins now entering regulated markets. Quaglini notes how decentralised finance (DeFi) platforms began introducing lending and borrowing models mirroring traditional banking functions in 2016. “We’re now seeing traditional assets like stablecoins and RWAs moving onto blockchain networks,” Quaglini explained. “The real change is that tokenised versions of these instruments are being brought into the digital space, allowing faster settlement, programmable transactions and more transparent ownership structures.” Custody as the cornerstone of institutional trust As digital assets mature, the core infrastructure supporting them is becoming indistinguishable from traditional finance in its risk and compliance demands. Hex Trust’s custody platform provides institutional-grade safekeeping together with staking, collateral management and over-the-counter (OTC) settlement tools. Through proprietary APIs, banks and fintechs can embed these capabilities directly into their platforms, enabling them to offer digital asset products to clients without developing their own blockchain infrastructure. Quaglini distinguished regulated custodianship from exchange-based models that combine trading and asset storage into models that can expose clients to counterparty risks. “Custody is not about trading; it is about protection. Our model keeps client assets fully segregated and bankruptcy-remote,” he said. Regulation and market context The conversation coincides with a significant regulatory shift; Hong Kong’s Securities and Futures Commission (SFC) new mandate allows licensed virtual-asset trading platforms to share order books with overseas affiliates, aiming to tap global liquidity. “Regulatory certainty is the enabler of institutional adoption,” Quaglini noted. Hex Trust enforces strong controls for anti-money laundering, know your customer procedures and real-time transaction monitoring. Operating across several jurisdictions, the firm aligns its frameworks with regulatory requirements to serve as a trusted, compliant bridge for institutions entering the blockchain sector. Hong Kong’s framework contrasts with Singapore’s measured, investor-protection-led approach and Dubai’s fast-track licensing regime, underscoring how Asia’s financial centres are taking distinct paths toward digital-asset regulation. For Hex Trust being headquartered in Hong Kong with operations across Singapore, Dubai and Europe, this diversity reinforces the need for adaptable, multi-jurisdictional compliance. Competition is intensifying. Global banks such as HSBC and Standard Chartered have moved into digital custody and tokenisation, while fintech start-ups continue to innovate in staking and settlement. Quaglini views Hex Trust’s independent technology stack as a differentiator. “We built our entire stack in-house,” he said. “It gives us control, flexibility, and speed in responding to market and regulatory developments.” Complexity and the institutional experience Despite growing appetite among institutional investors, blockchain adoption remains technically complex. Institutions must manage wallets, private keys and multiple chain protocols — tasks foreign to conventional finance. “In traditional finance, users never think about the plumbing,” Quaglini observed. “But in digital assets, they must deal with wallets, private keys, and multiple blockchains.” Hex Trust’s goal is to abstract these layers, offering a seamless, regulated experience that mirrors the reliability of conventional banking operations. The company’s modular API system allows institutions to add digital asset functionality without building from scratch, reducing integration risk and speeding up time to market. Artificial intelligence and the next frontier Looking ahead, Quaglini believes artificial intelligence (AI) will complement blockchain in reshaping financial operations. “AI and blockchain are both programmable and borderless,” he said. “We expect to see AI agents managing digital assets autonomously, optimising yield, monitoring risk, and detecting anomalies in real time.” This convergence could redefine how assets are stored and transacted, creating a fully automated, audit-ready financial environment. For Hex Trust, the opportunity lies in embedding AI-driven analytics into the company’s operations to improve monitoring and operational resilience. Custody at the core of digital finance Hex Trust’s long-term strategy mirrors the institutionalisation of digital assets. The firm continues to expand across Asia, Europe, and the Middle East, focusing on regulatory alignment and technology scalability. “Digital assets are becoming a structural part of the global financial system,” Quaglini said. “We’re seeing sovereign wealth funds, asset managers, and even central banks recognising their value. The next stage is about integration, not just experimentation.” As Hong Kong refines its digital asset regime, firms like Hex Trust will play a decisive role in shaping how institutional capital enters blockchain markets—safely, compliantly, and at scale.
