Gazprombank Weighs Crypto Trading Service at Swiss Division
Gazprombank Switzerland has joined forces with banking software giant Avaloq and blockchain startup METACO in a bid to widen its client base by offering crypto services, according to a Thursday press release from Avalog. The bank plans to buy, sell, and transfer digital currency assets for its customers, starting in mid-2019.
The service will use distributed ledger technology (DLT) solutions but will function similarly to trading systems for traditional assets. With a multi-signature system for transaction approvals, the product will work without the need for a separate crypto wallet or private key management, according to Avaloq. The Swiss company is one of the largest software developers for the so-called core banking, with its Avaloq Banking Suite used in more than 140 banks worldwide.
Lausanne-based METACO will provide a storage solution for the Gazprombank Switzerland new service.
“For both institutions and bank clients, trust is key… [with METACO custody integration] 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,” Avalog CTO Thomas Beck commented.
Gazprombank will launch the virtual coin service only in Switzerland because the country’s crypto environment is more favorable than Russia’s. Last week, a consultancy committee in the Russian Presidency proposed significant changes to the long-awaited crypto bill, casting doubt on its fate again.
Gazprombank Group also has a Belarus division, but it is unclear at present whether it plans to target this country. Earlier this year, the Belarusian government introduced a legislative package designed to attract virtual coin and blockchain capital.