Philippines’ UnionBank Opts Metaco and IBM for Crypto Safekeeping

The Union Bank of the Philippines, a pro-crypto bank, has chosen Metaco and IBM to provide orchestration for cryptocurrency storage solutions. Announced Thursday, Union Bank will deploy crypto management services on IBM Cloud.

“It’s a way to future-proof our banking business,” Cathy Casas, head of the bank’s blockchain, said in an interview with Bloomberg.

The bank will use Metaco’s Harmonize service, a crypto orchestration system. By doing so, UnionBank can improve the insurability of assets with certified physical controls for managing and migrating keys.

“We have the passion for meaningful and sustainable reinvention. We value our strategic partners, like Metaco, and collaborate with them in an alliance that is meaningful in pursuit of a common vision,” UnionBank Senior Executive Vice President Henry Aguda said in the release.

The partnership with UnionBank follows Metaco’s recent opening of Asia Pacific headquarters in Singapore.

Pro-Crypto Moves

The UnionBank debuted its crypto custody services in August 2021, stating that the bank is in “full compliance” with the central bank of the Philippines, in offering this service.

The bank has been exploring crypto-friendly options ever since it installed the first two-way bitcoin ATM, at its main bank branch in early 2019, mainly to address remittance service demand.

Crypto ATM spotted at @UnionBankPH's main branch. 🤖

(Hat tip to my friend @mcnmorales.) pic.twitter.com/Bt3mVTThDD

— MikeAbundo.eth 🦇🔊 (@MikeAbundo) January 18, 2019

The UnionBank has even issued its own stablecoin – PHX – pegged to the Philipino peso and backed by UnionBank reserves. PHX is similar to the US dollar-pegged Tether or USDT.

The stablecoin is available to all UnionBank account holders and can be purchased through debits to account holders.

Crypto Custody Services vs. Wallets

Put simply, custody services are safekeeping solutions for cryptocurrencies. On the other hand, wallets, though hot and cold wallets address safety concerns, are third parties offering storage and safety for digital tokens.

Importantly, crypto custody services are primarily intended for institutional investors and for those who hold large amounts of Bitcoin or Ethereum, or other digital assets. But wallets are for all crypto buyers, sellers, traders, and investors.

Having said that, Metaco services enable institutions to manage not only crypto custody and trading but also smart contract management and decentralized finance (DeFi). Some of Metaco’s crypto custody clients include Swiss banks BBVA and GazpromBank.

“[Clients] can leverage the existing stack, existing run capabilities to manage Metaco vaults directly from existing infrastructure. And we have a number of other similar deals in the pipeline, leveraging our combined capabilities,” Seamus Donoghue, Metaco’s VP of business development said in a CoinDesk interview.