Banks and other financial institutions are identifying new opportunities in crypto markets. Of course, to successfully provide crypto related services, there is the need to have proper infrastructure, technologies, and other resources at hand.
Gazprombank, which is a Swiss financial institution, is the latest bank to spot the potential gains of offering related services to its clientele. According to an Avaloq press release, Gazprombank established an alliance with the fintech firm and with Metaco; a crypto services company.
An Integrated Crypto Assets Network
The intention of the partnership is for Gazprombank to offer crypto services to its customer’s catalog, keeping up with the current times. The expertise of Metaco, known around the industry for being a top crypto custody solution provider, and the help of Avaloq will serve as the foundation for Gazprombank to set up an integrated crypto asset network destined for banks and wealth managers.
Gazprombank is one of the most prominent banks in Switzerland. It administrates about CHF 3.1 billion in total assets, which equals roughly $3.12 billion. The primary goal of the system is to manage “client portfolios across all asset classes, including cryptocurrencies.”
According to the press release, this is not the first time that Avaloq collaborates with the Swiss financial institution. “Gazprombank (Switzerland) Ltd, which is already an Avaloq client, aims to offer a cryptocurrency service to its clients in mid-2019.”
The bank wants to provide simplicity for users that need to perform transactions involving crypto assets. When the system is ready to be put in place, sometime in the middle of next year, customers will be able to perform all crypto-related operations, including buying, selling, and transferring, without needing a crypto wallet or managing a private key.
One of Metaco’s primary offerings to the alliance is the Hardware Security Module. The report explains that the tool can make sure to provide “a military security solution for storing private keys and managing wallets and operations” with support for multiple signatures.
A little Bit more about Gazprombank
Gazprombank, the one based in Switzerland and engaging with crypto offerings, is a wholly owned subsidiary of Russian giants Gazprombank (JSC). It is regulated by the FINMA, which is the Swiss Financial Market Supervisory Authority.
The bank got its name in 2010 following its acquisition by the Russian giants. It offers the usual banking services both in Switzerland and outside of it.
Other Banks are Experimenting with Blockchain Technology
Fortunately, other banks have adopted a similar approach and are now engaging not only with crypto solutions but also with the blockchain technology. In recent days, American company Signature Bank got the NYDFS (Department of Financial Services of New York) green light to deploy its digital platform, which is based on the blockchain.
Another perfect example of the crypto and blockchain fever migrating to the banking sector is the news coming from Brazil this week, where the most influential and powerful private owned bank, Itau Unibanco, established a pact with Standard Chartered (UK-based) to power small loans through a blockchain-based platform.
By Andres Chavez