Ian Allison reports this morning at Coindesk that IBM, long a leader in computing technology, is moving further into cryptocurrency custody with some new strategic partnerships.
One is with Swiss firm METACO, where IBM reportedly is licensing software to the company so that METACO can provide security with tools like Keep Your Own Key (KYOK) encryption and IBM’s cloud hyperprotect system, in addition to, assumedly, good AML/KYC standards and protocols.
“IBM naturally sells to banks and is very well positioned,” says Cobalt co-founder Adrian Patten, as quoted in Allison’s coverage. “A core part of providing custody is the secure management of keys. Many firms use IBM hardware for that and it’s going to be interesting to see what they do next to enhance the functionality of what’s being offered.” Cobalt also has a track record of collaborating with METACO on crypto.
Comparing private blockchain to alcohol-free beer, Allison suggests that IBM may be gaining more of an appetite for wading into truly decentralized finance with real coin plays related to assets with a defi, consensus-based proof of work or proof of stake protocol model, not controlled by a single company, as a stablecoin typically is.
One such novel IBM effort is IBM’s collaboration with Deutsche Bank to build crypto custody and trading tools.
Another would be IBM’s work with Zug, another Swiss enterprise, on cloud hyper protect operations.
“For the past several years the Swiss canton, or state of Zug, has been marketing itself as ‘Crypto Valley’, an obvious tip of the hat to Silicon Valley, to spur on blockchain innovations — and it’s working,” writes Ulrich Schimpel, noting IBM’s involvement. “This past year, the Crypto Valley Association touted 500 members, with growth at 30 per month. Last year, to demonstrate their new crypto credentials, officials in Zug openly accepted to join in for a challenging idea. Let’s register a new start-up using the blockchain, not in weeks or days, but in hours and let’s do it live for the world stage. Take that World Bank!”
Interested? Follow this blue chip IT company as it joins the bandwagon on defi.
