Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, and Symbiont, a pioneer in the use of blockchain and distributed ledger technology in capital markets, today announced they are working together to enable financial services organizations to securely execute smart contracts and other blockchain-based transactions.
Under the partnership, Symbiont will use Gemalto's SafeNet long-proven Hardware Security Modules (HSMs) to protect blockchain identities and transactions, helping to prevent theft, forgery, and other types of malfeasance.
Blockchain is a disruptive new technology that allows transactions to be carried out over peer-to-peer financial networks and acts as a distributed ledger that gives transactional authority directly to each counterparty involved. Symbiont's platform uses blockchain to allow institutions and investors to issue, manage and trade a range of financial instruments more efficiently over an encrypted peer-to-peer network. These instruments, also known as Smart Securites(TM), are self-enforcing, self-executing contracts that offer cost and time efficiencies compared with traditionally brokered transactions. Symbiont's integration of Gemalto's SafeNet HSMs ensures the highest levels of regulatory compliance and trust for cryptographic identities authorizing these transactions.
"Bringing Gemalto's market-leading HSM security modules assurance to Symbiont's Smart Contract Blockchain solution is not only an exciting offering, but a clear step towards securing Blockchain-based transactions," said Mark Yakabuski, Vice President of Business Development Strategy at Gemalto. "We look forward to helping customers add trust to the emerging smart contracts space."
"No corners can be cut in securing information in the 'distributed trust' environment enabled by blockchain technology," said Louis Stone, Managing Director at Symbiont. "To seize the opportunity in capital markets, each facet has to be best-of-breed. The combination of Gemalto's industry-leading HSMs and Symbiont's smart securities (TM) delivers just that."
Blockchain-based smart contracts save time and increase efficiencies in the execution of transactions, which can include anything from bond issuance to coupon payments to restrictions on trade. Once a security is issued onto the ledger powered by the Symbiont Smart Securities(TM) platform, it acts autonomously, eliminating traditionally manual mid- and back-office functions. These transactions and identities will be secured by Gemalto's SafeNet HSMs which will protect the cryptographic keys and provide encryption, decryption, authentication and digital signing services for the smart contract transactions.
Gemalto's SafeNet HSMs are dedicated cryptographic processors specifically designed for protection of the lifecycle of cryptographic keys that secures transactions, identities and applications. SafeNet HSMs are trust anchors that protect the cryptographic infrastructure of the most security-conscious organizations in the world, by securely managing, processing, and storing cryptographic keys inside a hardened, tamper-resistant device. SafeNet HSMs provide the broadest ecosystem of integrated technology partners. They are trusted by many of the world's largest financial institutions to protect more than $1 trillion dollars in financial transactions every day.