The Swiss subsidiary of Russian state-owned bank Gazprombank has officially announced plans for creating a digital currency platform in the middle of 2019. The banking institution has already formed a partnership with Avaloq and Metaco, proficient fintech companies.
The Core Technology
Blockchain-based company Metaco will be responsible for providing the major technology of the new crypto service called SILO. It is a custody solution that gives users an opportunity to securely reserve cryptocurrency and perform transactions, as it perfectly satisfies the needs of financial institutions.
Further, SILO is planned to be installed into a Banking Suite product designed by Avaloq. The company is basically dealing with supplies of banking products directly to financial institutions, such as HSBC, Barclays, and the Royal Bank of Scotland. The characteristic feature of Banking Suite is the ability to grant users an access to a wide variety of actions, including engagement with customers and checking account balances.
If the press release is anything to go by, then next year Gazprombank will launch its crypto service platform, which will offer their services of buying, selling, and transfer of crypto assets on behalf of clients. Developers also note the interaction with a platform will require no crypto wallets or private key management. Besides, the project has a Hardware Security Module integrated into the system, which gives a high level of security for handling, processing, and storing all the necessary data.
The crypto community welcomes banking institutions introducing crypto trading services as it might boost digital currency and fintech adoption. According to Vladislav Kiselev, a successful serial entrepreneur, crypto investor and Founder of The JOY, an ecosystem for the consumers and providers of wellness and beauty treatments, “banks don’t consider cryptocurrencies as a threat anymore and will start to utilize them to secure their business processes or to offer their clients a broader range of financial products in comparison to competitors.”
He told Coinidol:
“I think in the future we will see more banks adopting new technologies to be on par with the modern cryptocurrency trends. Although there are still regulation issues in many countries that will block banks from entering this field for a while I don’t think that it will drastically change the market right now. Should the regulations in most developed countries change it will be a real trigger for cryptocurrency adoption by the banks.
Nevertheless, even the emergence of crypto trading services from traditional banks, on a small scale, will lead to an increase in overall crypto utility which is definitely a good sign for crypto markets.”