- BRD wants to meet banking industry regulatory needs
- Tech company partners with others to provide KYC and AML solutions
- This collaboration will provide a framework for third-party custody solutions
BRD starts the collaboration with other tech companies in an effort to improve its offerings for the banking sector. The crypto wallet provider took this step after the Office of the Controller of the Currency permitted in July national banks to provide the custodial services for crypto.
This new clarity in the regulatory framework has made the need for secure and reliable enterprise-level custodial infrastructure crucial. To fill this need, BRD has deployed the Blockset platform.
BRD is planning that Blockset becomes the single point repository for building custody solutions that are compliant with regulations. This partnership will enhance the Blockset platform with compliance to existing regulations governing the traditional banking sector.
How will it work?
The main concern of traditional banking institutions when providing crypto custody services is the compliance with regulations they already need to satisfy for non-crypto services. This partnership is aimed at building up capabilities of enterprise space around Know-Your-Customer and Anti-Money Laundering policies.
Part of the strategy is the deployment of Chainalysis’ “Know Your Transaction” solution for the AML policy compliance. It will allow all relevant institutions to monitor and identify potential high-risk transactions in the same manner as it is already done in the traditional banking sector.
CipherTrace is providing its recently announced tracing tool, which will provide tracking of transactions, monitoring of risk, and compliance reporting. With KYC compliance, Blockset will receive Unbound Tech’s solution for security keys management and protection across the whole infrastructures.
BRD is set to solve banks’ problems
For years now, a demand has existed for a traditional custodian institution to provide this type of service for cryptos. A major hurdle for it was compliance with regulatory and legal frameworks. Blockset at the moment looks like a solution to this problem. It will have the capacity to provide suitable regulatory compliance as a third-party solution, and it appears that among the traditional banks exists such an interest.
It is not unheard-of for banks to use third-party custody services in the form of sub-custody. With this cooperation, BRD provides a technological framework for building enterprise solutions that are in compliance with regulations.