Cryptocurrencies are becoming mainstream, and there is an increasing demand from retail and institutional clients to enable permissionless, 24/7/365, near real-time, low-cost crypto transactions. With the rise in demand, clients are looking to their banks to include these digital assets in their product offerings.
Banks are the trusted financial institute for clients and are therefore in a unique position to onboard new and less tech-savvy users by developing tools that seemingly integrate cryptocurrencies with traditional banking services.
Rather than storing cryptocurrency with an unregulated startup company, clients may find it more convenient, accessible, and secure to hold crypto assets with a trusted financial institution. Banks, as trusted financial institutions, can fulfill the role of a trusted third party to keep cryptocurrencies safe.
For clients, it is convenient to have a single overview of all assets, including cryptocurrencies. While crypto-related financial services can generate new revenue models for banks.
“The digital asset ecosystem offers significant economic potential. It can facilitate more efficient transactions and unlock untapped economic value. The most promising use cases of digital assets in financial services are in cross-border trade and settlement, trade finance, and pre- and post-trade capital market activities..”
Safeguarding clients’ assets, be it cash, gold, securities, or virtual assets, is a paramount service for a bank. As with any other asset, this is also true for cryptocurrencies.
Cryptocurrencies are a new class of assets that fundamentally differs from traditional financial transactions because, technically, the asset exists on a public blockchain ledger such as Bitcoin or stablecoin such as Tether.
Banks can fulfill the role of the trusted third party to manage access to the private keys and ensure that only authorized transactions are signed and submitted to the correct network without exposing sensitive data.
Crypto Revenue Models
Banks add additional value for their clients by offering crypto custodial services, especially if crypto services are integrated into the financial bank infrastructure. Therefore, banks that provide crypto custody services into their existing platform will have a competitive edge over their competitors.
New revenue models include custodial services, brokerage, cold storage, trading, crypto loans, payments, and settlements.
Blockchain enables many more opportunities including Central Bank Digital Currencies (CBDC), stablecoins, asset tokenization, and Decentralized Finance (DeFi) services.
Institutional Grade Crypto Infrastructure
Building an institutional-grade crypto infrastructure that will pass regulatory approval is technically challenging, time-consuming, and expensive. NEXUS, our API-driven crypto ISO/IEC 27001 & ISAE 3402 Type 2 certified crypto infrastructure solution has the highest levels of security, confidentiality, and availability.
Saas, Hybrid, or On-premise
Robust infrastructure, flexible deployment options
The decision between a Software-as-a-Service (SaaS) or in-house respectively on-premise solution is a crucial aspect of crypto infrastructure platform development. This is particularly important for banks looking for an advantage in the highly competitive financial market.
Our platform is designed with a choice of deployment and implementation options to meet the need of all stakeholders while maintaining the highest security standards and availability.
- Cost effective
- Development and maintenance
- Amazon Web Services (AWS)
- Shortest time to market
- Cost effective
- Security updates and maintenance
- Amazon Web Services (AWS)
- In-house development
- Support of Quantoz
NEXUS integrates with Multiple Crypto Exchanges
NEXUS works with multiple online payment methods, bank transfers and credit cards to enable integration with existing banking systems
The platform offers native wallet infrastructure to serve the major cryptocurrencies
NEXUS comes with advanced trading algorithms and bots that minimize volatility & counter party risks through automated crypto position balancing.
NEXUS comes with extensive tools for customer and risk management (AML, KYC, fraud prevention).
NEXUS generates compliance reports to meet requirements of regulatory frameworks.
All fiat- and crypto transactions and operations are fully traceable and auditable.
By addressing risks as financial crime, malicious activity and fraud, NEXUS helps remove key barriers in the adoption of next generation financial technology.
No technical skills are needed to operate the system. The platform includes a 24/7 health status dashboard with comprehensive overviews of system status, including servers, API calls, transactions, wallets and connections to exchanges.
NEXUS leverages proven, reliable and scalable crypto infrastructure technology as a service, deployed in the cloud with enterprise grade providers Microsoft Azure and Amazon Web Services. The NEXUS Platform has been in production since 2015.
NEXUS is built on robust technology. The platform provides a competitive cost efficient infrastructure for wallet and blockchain database management.
For customized implementations, a comprehensive set of API’s enables clients to integrate NEXUS functionality into their (legacy) backend systems, web-pages and apps.