Gazprombank, the banking division of Russian giant Gazprom is working with Avaloq and Metaco to provide crypto asset custody services for institutional clients next year.

According to an official press release issued on 6 December, METACO expressed that the strategic decision is part of a joint effort that has been going on for some time. They are also confident that this service will start operating in the second quarter of next year:

Fintech leader Avaloq and crypto-asset custody infrastructure specialist METACO* have entered into an innovation partnership with Gazprombank (Switzerland) Ltd, a Swiss bank, to implement their integrated crypto asset solution. This product innovation aims to provide banks and wealth managers with a fully integrated solution for the management of client portfolios across all asset classes including cryptocurrencies. Gazprombank (Switzerland) Ltd, which is already an Avaloq client, aims to offer a cryptocurrency service to its clients in mid-2019.

According to information from the three firms involved, the service will focus on security. For this purpose, Gazprombank will develop a product using the SILO technology, a “highly secure crypto-asset custody solution for institutional clients” created by METACO. In turn, this product will run within the Avaloq Banking Suite.

Gazprom is Entering The Crypto-Verse With a Secure, User-Friendly Custody Service

Thomas Beck, Group CTO at Avaloq, assured that the partnership will offer a product not only with high-quality standards but also highly user-friendly.

For both institutions and bank clients, trust is key. Avaloq and METACO have considered this for the development of a fully integrated solution that can be offered to clients by their trusted bank. 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.

Despite maintaining a stance sometimes contrary to the use of cryptocurrencies, Russian policy has shown great interest in the development of blockchain technologies. As Gazprom is a key industry for the Russian economy (Gazprom is the leading supplier of gas in Europe), it is possible that this decision will lighten the harsh vision of the state in this regard.

It is also important to note that Gazprombank is a company domiciled in Switzerland, so there are no legal problems that could complicate the operation of the new crypto custody service.