Banking & Custody Solutions
Can your assets survive a geopolitical shock?
Sovereignty is not a buzzword; it is a structural requirement. We architect custody solutions that isolate wealth from systemic volatility while maintaining absolute liquidity. Your capital remains yours—accessible, protected, and precisely where it belongs.
The Sovereign Vault Architecture
Traditional banking operates on a commingled model where your assets sit alongside millions of others, exposed to the same counterparty risks and institutional liabilities. The PRIVALOR AG model rejects this aggregation. We establish segregated accounts within Tier-1 banking institutions, legally isolated to ensure that your wealth is never used as collateral for the bank's own operations.
This structural integrity extends to the jurisdictional layer. We do not merely "place" assets; we strategically map them across stable political environments. This creates a firewall against localized legislative changes, ensuring that a policy shift in one region does not compromise the integrity of the whole. It is the digital equivalent of a numbered account, fortified by modern compliance and legal engineering.
Key Constraint: We do not utilize offshore "tax havens" for obfuscation. Our architecture relies on "white-list" jurisdictions with robust rule of law and financial transparency, satisfying both German and US regulatory standards while maximizing asset protection.
The Liquidity Paradox
Static AnalysisTraditional Custody
- ✕ Frozen Assets: Standard "lock-up" periods for alternative investments can exceed 90 days.
- ✕ Hidden Fees: FX spreads and custody maintenance fees erode 1.5-2% annually.
- ✕ Commingled Risk: Your assets are pooled, exposing you to the bank's solvency issues.
Segregated Mandate
- ✓ Instant Liquidity: Dedicated credit lines against portfolio value (LTV up to 70%).
- ✓ Zero Spread: Direct market access; no internal FX desk markup.
- ✓ Legal Firewall: Assets held in your name (Nominee structure optional).
Recommendation: For portfolios exceeding €5M, a segregated mandate eliminates structural drag on returns.
The 48-Hour Test
A real-world scenario: A client required €2M in liquidity on a Saturday morning to execute a private acquisition. Traditional banks offered access on Monday.
Outcome
Through our banking partners' dedicated wealth desks and pre-established credit facilities, funds were available within 4 hours. The acquisition closed without delay.
Key Terminology
- Segregation of Assets
- Legal distinction ensuring client funds are never on the bank's balance sheet. If the bank fails, your assets are safe.
- Custodian Bank
- The institution physically holding the assets (securities, gold, digital keys). We select these based on credit rating and jurisdictional stability.
- Nominee Structure
- A legal layer where PRIVALOR holds assets on your behalf, providing operational efficiency while maintaining your beneficial ownership.
- Tri-Party Agreement
- A contract between you, PRIVALOR, and the Custodian. It limits our actions to what is explicitly permitted.
Institutional Partners
Is your current custody solution compliant?
Most private banks offer "safekeeping," yet rarely disclose the rehypothecation risks or jurisdictional weaknesses inherent in their model. We provide a no-obligation audit of your current setup.