In July of this year, the Office of the Comptroller of the Currency allowed federal banks to offer cryptocurrency custody services. Although the need for enterprise-grade infrastructure to securely deploy storage solutions has become critical.
Adrian Treccani, CEO of METACO, the technology partner of organizations entering the digital asset ecosystem, stated in a report published by Cointelegraph, PwC, and CV VC that the institutional adoption of custodial solutions for digital asset management has clearly entered a new phase:
“The more explicit regulation of digital assets in many jurisdictions, as well as the adoption of large global organizations such as Libra and PayPal, underscores the need for a reliable, secure and resilient infrastructure to manage these assets.”
Cryptocurrency wallet provider provides storage as interest grows
To address this issue, BRD launched Blockset, a real-time data integration platform used by large financial institutions and crypto companies looking to offer storage solutions. BRD CEO Adam Traidman told Cointelegraph that business space may be important to the growth of the digital asset industry. In this way, Blockset acts as a digital asset toolkit that uses a single source application, enabling financial institutions and banks to build scalable trustee solutions.
Tradesman mentioned that SBI Holdings, one of the largest investment banks and digital brokers in Japan, is currently using Blockset. He also noted that Big Four KPMG and financial services giant PayPal were part of Blockset’s early beta program, and noted that both are currently undergoing proof of concept.
Although Blockset was in use in the months leading up to the OCC announcement, Trademan shared that there has been a significant influx of deep interest in the blockchain company solution recently. He said, “Most of the interest has been generated by regional banks, which tend to have more progressive views on banking services for less than 40″.
But as more traditional banks enter the digital asset space, the need to improve Know Your Customer (KY) capabilities is becoming more and more apparent, as Trademan explained: “Requirements for money laundering, fraud, key management / security and online analytics will ultimately allow the business to direct to link the new digital asset industry with the architecture. The current infrastructure of financial services. ”
To meet these demands, BRD announced major partnerships with CipherTrace, Elliptic, Unbound Tech, and Chainalysis. This collaboration reflects BRD’s commitment to transform Blockset into a suite of end-to-end solutions to support a wide range of blockchain initiatives for business, Traiman said.
Basic compliance requirements for financial institutions
The new BRD partnership will enable Blockst to deliver trustee solutions to banks and financial institutions that have a high level of market readiness and meet current stringent compliance requirements. John Jeffries, CipherTrace’s chief financial officer for blockchain analytics, told Cointelegraph that CipherTrace provides predictive risk assessment and real-time attribution analyzes flowing into the blockchain flow, which provides cryptocurrency protection, transaction tracking, risk monitoring, and compliance reporting.
CipherTrace recently announced that the company can track Monero (XMR) transactions, while the IRS specifically offered bonuses of up to $ 625,000 to anyone who could hack untraceable privacy coins like Monero.
The blockchain will also include a Know Your Transaction sequence analysis. This anti-money laundering solution is used to track cryptocurrency transactions. Chain analysis will enable Blockset’s clients, i.e. financial institutions, government agencies and cryptocurrency companies, to continuously track large amounts of cryptocurrency activity and identify high-risk transactions. This will allow compliance teams to focus on suspicious transactions that should be reported.
In addition to KYC’s measures, Blockset will include multi-party computing from privacy firm Unbound tech to secure keys across all devices.