- This partnership will see the firms launch a blockchain-based platform for financial institutions.
- The platform will support various cryptocurrencies, including CBDCs and stablecoins.
- Reportedly, the platform will run on a compliant custody framework.
SIA, a multinational payments firm based in Italy, has teamed up with Hex Trust, a crypto custodian, to help its European banking clients hold digital currencies. A report unveiled this news on October 22, noting that this collaboration will see the firms launch a blockchain-based platform for financial institutions. Reportedly, this platform will help banks hold crypto assets securely on behalf of their clients.
According to the report, the platform will support different crypto coins, including security tokens, utility tokens, Central Bank Digital Currencies (CBDCs), and stablecoins. Additionally, the platform will be able to operate on different blockchain protocols. While the service aims to streamline custody, it will also act as a gateway to digital asset intermediaries such as exchanges and brokers. The publication went on to disclose that the service will run on a custody framework that complies with anti-money laundering and counter-terrorism financing regulations.
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Commenting on this bullish move, SIA’s innovation and business solutions director, Daniele Savarè, said,
“We aim to create an ecosystem where banks can manage their digital assets based on state-of-the-art technologies and comply with their internal procedures and regulatory requirements.”
Working with banks to streamline crypto adoption
Reportedly, Hex Trust aims to offer European banks the software that will enable them to hold their clients’ crypto safely through this collaboration. Per the Hex Trust’s CEO, Alessio Quaglini, the firm will also act as a sub-custodian for banks that are not interested in offering custody services directly. He added that this partnership will see SIA become Hex Trust’s primary distribution partner, allowing it to offer European banks crypto services.
At the moment, Hex Trust is allegedly working with three banks, Mason Privatbank Liechtenstein AG and two unnamed banks in Asia. Per Quaglini, the company has another ten banks, which are exploring the viability of its products.
This news comes after Hex Trust joined hands with R3, an enterprise blockchain firm, in April to offer the company’s banking clients an additional option for issuing security tokens. Explaining why partnering with R3 was necessary, Quaglini said that its clients were increasingly demanding Corda-based tokens and other similar blockchain-based protocols.