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DLT for IT service providers in the banking environment

SRC expert Botermann | DLT for IT service providers in the banking environment

Crypto assets based on blockchains move many states, companies and the world of banks and their IT service providers.

Distributed ledger technology (DLT for short) is the term used to describe the technology of “distributed cash ledgers”. The key difference: trans­ac­tions are legit­imized in a decen­tralized manner and stored with the partic­i­pants. As a disruptive technology, DLT makes numerous inter­me­di­ation and clearing points redundant. Banks are threatened with the loss of their position as anchors for trust­worthy transactions.

But this is precisely where the prospects for future business models lie, since it is precisely the banks that tradi­tionally have expertise in the safekeeping of confi­dential infor­mation. The decisive technical trust anchor of every trans­action via DLT is the customer’s private key. The trusted management of this private key may prove to be a perspective for the evolution of banks’ business models.

To summarize: DLT appli­ca­tions offer IT service providers in the banking environment good oppor­tu­nities to adapt their own business models and also position themselves for the future. Services in the crypto custody business can be seen as a suitable entry point, which can be expanded and supple­mented in the future.

How can business models in the banking environment be adapted to these devel­op­ments? What oppor­tu­nities does the crypto custody business offer? What technical and regulatory require­ments must be met?

In the articles DLT for IT service providers in the banking environment (german), crypto custody business: starting point for business field expansion (german) and crypto custody business as a business area expansion for banks (german) published in gi GELDINSTITUTE and on cash.online, SRC expert Dr. Benjamin Botermann gives an insight and overview of challenges, oppor­tu­nities and stopler stones of the crypto custody business with distributed ledger technology (DLT).

The SRC experts will follow the exciting devel­op­ments in the field of cryptocur­rency and digital euros for you and support you in the realization of your crypto­custody business. We will be happy to inform you about the possi­bil­ities to get involved in this innov­ative sector.