Gazprombank, a large state-owned Russian financial institution that serves as the primary banking division of the country’s gas company, Gazprom, announced on Thursday (December 6th) that it is planning to introduce a cryptocurrency service in 2019.
According to an official statement from Gazprombank, the new service will be launched at the company’s Switzerland-based division in mid-2019. The bank’s cryptocurrency platform is reportedly being developed using proprietary “institutional-grade” technology.
Using Metaco's SILO Custody Solution
As explained in the announcement, Gazprombank’s software development team will be implementing the crypto platform using SILO, a product created by blockchain-focused firm, Metaco.
One of the main concerns institutional investors have had about investing in digital assets is the lack of properly developed, practical, and affordable custodial solutions. SILO is a custody solution that will reportedly allow organizations to securely store their cryptoassets and also conduct transactions with them.
Metaco has successfully integrated SILO into Avaloq’s suite of “core banking” products. Avaloq is a Swiss firm that develops software for large financial institutions including Barclays, HSBC, and the Royal Bank of Scotland.
Comprehensive Banking Suite For Wealth Management
Avaloq’s Banking Suite is its most well-known and widely adopted product as it allows organizations to perform a wide range of functions - including managing the communication process with clients and checking their account balances.
Commenting on the new initiative, Thomas Beck, the group chief technology officer at Avaloq, remarked:
Thanks to the close integration of the Metaco storage solution, banking and wealth management customers won’t have to trust additional third parties when trading with cryptocurrencies. By bringing together all asset classes in one portfolio view, the solution will also ensure the highest levels of convenience and usability.
Buying, Selling Cryptos Without Needing Wallet, Or Private Keys
Gazprombank and Avaloq’s management has said that when the platform goes live, the Russian bank’s Swiss division will be able to “buy, sell and transfer cryptoassets and [fiat] currencies on behalf of clients and provide a consolidated portfolio view, without any need for a crypto-wallet or private key management.”
As CryptoGlobe reported in September, the Satis Research Group had released a research report that included information regarding the top institutional custody solutions providers. Xapo, a Hong Kong-based cold storage vault provider for cryptoassets, and BitGo, another leading provider of digital asset offline storage solutions, were listed in Satis’ report as one the most reliable custodian services.