Gemalto and Ledger to provide cryptocurrency security for banks

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Gemalto and Ledger have announced plans to integrate Ledger’s Blockchain Open Ledger Operating System (BOLOS) into Gemalto’s SafeNet Hardware Security Module (HSM) to provide a secure environment for financial institutions looking to leverage cryptocurrency.

The solution enables a variety of use cases, such as launching investable products on cryptocurrencies, or stocking cryptocurrencies securely.

The market has seen a significant growth of cryptocurrencies over the past few years, now representing a market capitalization of $137 billion, compared to $7.8 trillion for gold and $83.8 trillion for the global stock market. In addition, multiple large banks and hedge funds have announced plans to develop and implement blockchain use cases, both for internal and external purposes, said Ledger CEO Eric Larcheveque.

“As the market value of blockchain based solutions rises, so does the need for bank grade security products, when financial institutions are looking for dedicated, certified solutions,” he said. “We plan to leverage SafeNet HSM to provide our clients in the financial industry with a unique, secure product line customized to their needs.”

“With the proper security to protect communication, devices and users, blockchain can offer a trusted platform for parties that don’t have an existing relationship to do business efficiently and transparently,” said Todd Moore, senior VP of encryption products at Gemalto. “Beyond the financial services market, we are also working with Ledger to embed BOLOS into any device’s secure element and bring high-assurance security to markets like smart energy applications, home automation or wearables.”

Customers can customize account-based digital signature policies, heightening security requirements for user authentication of these transactions. The solution also builds in the ability to execute blockchain-based smart contracts (self-enforcing, self-executing digitally signed contracts). Compared with traditionally brokered transactions, a secure blockchain application for cryptocurrency trading simplifies a financial organization’s portfolio and contract management process by reducing costs and saving time.

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