For the world to realize the full potential of the cryptos, it cannot function separately from the established systems of the world. And, similarly for the existing systems to function more efficiently, it cannot keep itself away from the emerging technologies for too long. Both need a deep interconnectedness.
And, this is where METACO comes into play, helping banks and financial institutions to integrate high-grade cryptographic solutions into its core processes. So, how does it help banks and financial institutions?
METACO, through its SILO platform- an institutional digital asset operating system- enables customers to securely manage their fiat and crypto assets through single institutions. In short, a solution that enables banks and financial institutions to capitalize on the blockchain technologies and systems.
Let us understand in detail, how METACO achieves it.
METACO is a Swiss FinTech company founded in 2015 that focuses on providing security-critical infrastructure to financial institutions to enable them to enter digital asset space.
Backed by some big names of the industry, METACO is part-owned by Swiss telecom major Swisscom, the national postal service- Swisspost, and banking technology vendor Avaloq.
With the crypto ecosystem projected to grow and have as much as 10% of global capital markets by 2027, financial institutions can hardly give it a miss. And, the challenge is to provide institutions with a way to interact with digital assets securely and in real-time.
SILO, the newly developed digital asset management system by METACO for banks helps in that direction. It eliminates all those infrastructural bottlenecks, thus allowing financial institutions to embrace the blockchain technology and integration of asset tokenization into the global marketplace.
About METACO’s SILO Product
SILO was launched in 2018, providing a comprehensive digital asset management system. It integrates into the basics of crucial banking and payment systems, thus allowing for comprehensive management of thousands of cryptocurrencies, tokens, and smart contracts with custom risk-management processes.
How Do SILO Functions?
Despite being a popular option, many technical barriers make cryptocurrencies extremely difficult to store. Financial institutions also lack the measure to store the keys to cryptocurrencies. And the result, people have to depend on services that are highly manual, expensive, inefficient, and insecure.
This is a far from ideal way, how people should adopt the new economic system. Also, the current service providers lack the trust and safety of a bank that they have earned over the years.
SILO solves this issue by bringing the much-needed credibility and reliability in the systems. It is a patented multi-wallet solution partly on-premise and partly in the cloud, designed to manage multiple accounts with different currencies and security protocols such as multi-signature and transaction flow limits.
It is a combination of a highly advanced software from METACO and high-grade tamper-proof hardware from Guardtime.
SILO allows banks and financial institutions to provide their clients with the highest-grade protection of their assets while still providing liquidity to trade and make payments.
Services offered on METACO-SILO
SILO offers a complete technology stack for the management of digital currencies and tokens. It offers custodial services with robust key management, allows for secure transactions of different currencies with programmable governance, enables trading of cryptocurrencies from exchanges and brokers. And, it also helps in tokenization with complete lifecycle management of asset tokens.
Benefits of METACO-SILO
- Provides unified platform infrastructure for hot and cold wallet system
Through its unified platform, the banks have the flexibility to support any kind of storage and key management strategy that it chooses. The connected hot-wallets accommodate the short term requirement like providing liquidity to clients. The fully air-gapped (cold) wallet option enables banks to offer a more dedicated storage solution to serve high-net-worth clients and also acts as a storage of reserves.
- Advanced programmable entitlements systems
SILO supports an advanced entitlements system that regulates the access rules and has highly customizable workflows. It enables the integration of KYC and AML procedures, supports secure interaction with critical functions like liquidity and order management, and also supports a growing list of other services like borrowing and lending, crypto-fiat settlement networks, core-banking interaction, and reporting multi-jurisdictional taxes.
- Tokenization and Asset Servicing Engine
SILO’s highly advanced smart contract engine secures the entire asset-tokenization process, from mining, burning, and transfer. It helps with the complete lifecycle management of asset tokens and flexible enough to include corporate actions.
- Supports an ecosystem of services
SILO’s services go beyond the broad range of blockchain-enabled services (both public and permissioned). It can integrate a complete ecosystem of services for liquidity, regulatory compliance, multi-jurisdiction tax-reporting, and sub-custody.
- Flexible integration options
SILO can be deployed on-premise and in the hybrid cloud with a network of service providers for security consulting, project management, infrastructure hosting, and system integration.
A secure and reliable system
METACO provides full hardware security and authentication technology that ensures better hash generation and backup for disaster recovery.
Through its customizable governance tools, establishments can control signatures, transactional flow limits, time-locking, whitelisting, role-based system access, and other validations. And above all, the client’s assets on SILO’s system are insured from all criminal activities via the group’s partnership with AON, the world’s second-largest insurance broker.
Key Strategic Partnerships & Series A Funding
METACO’s SILO enjoys the backing of some of the major players of the industry including Giesecke + Devrient, Standard Chartered, Zurcher Kantonalbank, SICPA, and Investiere venture capital. In turbulent times of COVID19, Metaco has secured $17 million in its Series A funding round.
Also, METACO is a member of many organizations including Frankfurt School Blockchain Center, Global Digital Finance, Swiss Finance + Technology Association, Crypto Valley, Swiss Blockchain Security (SBS), Innovaud that are helping to transform the financial services industry through regulated and responsible development of blockchain technology.
METACO has also entered an agreement with two other Swiss firms, AlgoTrader and Cysec to build a Swiss-made crypto asset management ecosystem for financial institutions. It will include complete life-cycle management of their digital assets that include secure storage, management, and automated trading and execution.
Final Take On METACO’s SILO
For the banking and financial world, there are myriad regulatory obligations that need to be fulfilled and the very regulations restrict the banking community to have exposure in cryptocurrencies. And, if banks want to embrace the digital assets, it will require full integration and should not be managed as an exception but like anything else.
One of the unique things about METACO’s SILO platform is that it doesn’t look at cryptos and the traditional financial system separately. Rather, it integrates both to reinvent the financial world through the tokenization ecosystem. With SILO, institutions can integrate the same risks and controls to every other asset class.
In short, SILO is a next-gen highly flexible, and resilient digital asset management solution that provides a way for the existing financial system and emerging crypto ecosystem to interact and function with greater interconnectedness.