Banking

Giving cryptocurrency activity a security infrastructure

blockchain - security infrastructure
(C) iStock.com/Amornism

The market of growth of cryptocurrencies in the last two years has been so staggering that what kind of security infrastructure is in place has become a real concern. Cryptocurrencies now have a market capitalisation of $137 billion, and a lot of large financial institutions and hedge funds are looking to implement blockchain use cases.

World leading digital security company Gemalto has teamed up with Ledger, a company in the blockchain infrastructure and security space, to provide high-assurance security infrastructure for crypto asset applications.

Eric Larchevêque, CEO at Ledger, said:

“As the market value of blockchain based solutions rises, so does the need for bank grade security products, when financial institutions are looking for dedicated, certified solutions. We plan to leverage SafeNet HSM to provide our clients in the financial industry with a unique, secure product line customized to their needs.”

The integration of ledger’s Blockchain Open Ledger Operating System (BOLOS) and Gemalto’s SafeNet HSM will provide financial institutions a secure zone in which to leverage cryptocurrency. Banks and hedge funds to launch investible products on cryptocurrencies, stock digital currencies securely, and a number of other use cases.

Customisable policies

Customers will be able to modify account-based digital signature policies in order to tweak the security requirements that are needed for these transactions. Smart contracts can also be utilised in order to provide a simplified, cost-effective and effective portfolio and contract management process.

The partnership sees the scope of their offering extending beyond finance and into the realm of IoT. The combination of a robust security infrastructure and a decentralised system for IoT network could be the next important step in working towards a more efficient, privacy-protecting IoT system that also enable identity validation and secure offline storage.

Todd Moore, Senior Vice President of Encryption Products at Gemalto, said:

“With the proper security to protect communication, devices and users, blockchain can offer a trusted platform for parties that don’t have an existing relationship to do business efficiently and transparently. Beyond the financial services market, we are also working with Ledger to embed BOLOS into any device’s secure element and bring high-assurance security to markets like smart energy applications, home automation or wearables.”

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