Hyper Protect Offline Signing Orchestrator is the answer toIBM to the needs of safety from custodians as Metaco and banks for the cold storage from digital assets. The promise: a technology adapted to requirements from institutional.
The institutionalization of crypto finance and tokenization are giving rise to new technological needs. IBM positioned itself in this market segment with the launch of IBM Hyper Protect Offline Signing Orchestrator (OSO).
OSO is described as a solution aimed at facilitating the deployment of secure cold storage technologies for digital assets – or offline.
A safety bubble for cold storage
To develop this product, IBM has teamed up with Metaco, owned by Ripple, and several leading banks.
Big Blue’s orchestrator provides a rules engine. It acts as an intermediary between two applications designed not to communicate directly with each other for security reasons. As such, it is said to provide “an efficient and secure solution for facilitating digital asset transactions”.
Hyper Protect OSO helps protect high-value transactions by offering additional layers of security, including disconnected network operations, time-based security and electronic approval of transactions by multiple stakeholders,” IBM details.
Metaco plans to integrate the tool into its Harmonize system. OSO acts as an intermediary between two components. Harmonize Core and Harmonize Cold Vault are hosted on separate instances of Hyper Protect virtual servers.
Another security option for Metaco
For Metaco, securing crypto and its operations is a selling point and a growing requirement of its institutional clientele.
As the provider of an institutional-grade custody infrastructure trusted by some of the world’s largest custodians and banks, it is our responsibility to offer our customers state-of-the-art digital asset security,” justifies Adrien Treccani, founder and CEO of the startup.
The CEO points out that regulatory requirements for cold storage are becoming increasingly stringent, as in Singapore, Hong Kong and Japan. To meet these requirements, Metaco is expanding its catalog of cold storage solutions.
Human control, but automated operations
Thanks to OSO, the custody through Harmonize, is able to offer a new institutional cold storage deployment option tailored to its customers’ specific operating and risk management models.
IBM points out that the most common attack against these systems is based on internal malice. Once inside the network, attackers can access terminals and install software.
The hacker could redirect the transaction to another bank account, resulting in the loss of millions of dollars”, explains the publisher, deeming these attacks “very difficult to detect”.
IBM also believes that operating costs and operational errors are currently holding back the use of cold storage technologies.
The American player responds to these problems by removing the human element from operational processes. Control remains, however, as users can assign auditors to “review and approve or reject transactions”.
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