Temenos is now integrated with Wyden, an institutional crypto and digital asset order and execution management system (OEMS). By extending the digital asset wallet integration to now include the order management lifecycle, we have demonstrated, together with our partners, how banks using the Temenos banking platform can benefit from a fully automated and end-to-end digital asset solution for both custody and trading.
How does the integration work?
Temenos demonstrated through this proof-of-concept how a fully automated end-to-end digital assets order workflow can work with connectivity to Wyden for order and execution management.
As first step we defined within core banking the trading pairs we wanted to make available to bank customers. For the purpose of the PoC we set up a BTCUSD trading pair to allow the customer to purchase Bitcoin into their portfolio. We then showed how a bank employee on behalf of the end customer could create a buy order for this trading pair using Temenos Explorer. Following automated pre-trade checks, the order was created within the core banking securities system, setting required fields such as customer reference, security reference, and order quantity. The order creation event was then sent to the Temenos Integration Framework and was then transformed into a FIX 4.4. message by the Temenos FIX Interface. The message was then sent to the Wyden system, which then subsequently placed it on an external crypto exchange.
Upon order execution at the crypto exchange, Wyden generated an execution report including details such as the execution price and exchange. This was sent back through the Temenos FIX interface to update the record keeping in core banking. The new position then became visible within the customer’s portfolio using Temenos Explorer.
What is the impact for banks?
Key benefits of this integration include:
- Quick and easy setup
- Fully automated workflows leading to lower operating costs
- Broad range of features and pre-integrated trading venues
Key enablers for this integration included the open and flexible integration architecture offered by Temenos combined with the rich features of their out-of-the box FIX interface. This was combined with the advanced capabilities of the Wyden platform which in turn offered ready -made integrations to leading digital asset trading venues. All of this allowed to set up and execute the end-to-end integration PoC use cases with a small team, in a short amount of time, and without any additional development.
The integration shows how such workflow can be enabled in a fully automated fashion, lowering operating costs for the bank. By adding the integrated digital asset order management capability alongside existing digital asset custody opens the door for banks running the Temenos banking platform to enable full feature digital asset services quickly and easily. Temenos has already integrated with leading enterprise wallet providers such as Taurus and Fireblocks.
Why is this important?
With incoming global regulatory frameworks such as MiCA bringing clarity to provision of compliant digital asset services, banks are well positioned to broaden their offers and capitalize on continued interest in the space by offering this new asset class. By adding crypto and digital asset services, banks can open new revenue streams, reinforce their image as digital leaders, appeal to the next generation of customer, and build experience to prepare for asset tokenization use cases that are on the horizon.
Beyond the integration of digital asset custody into core banking, a key part of the business workflow for a complete offering is to provide access to crypto trading venues to allow customers to buy and sell crypto assets. This requires integration between the Temenos banking platform where customer orders are originated to an OEMS such as the Wyden platform, providing the interface to relevant venues such as digital asset brokers and exchanges for execution, as well as subsequent settlement of assets to the custody provider.
How does Wyden help?
Wyden’s institutional crypto and digital asset OEMS seamlessly integrates with various custody solutions. With this latest integration Wyden now also connects with the Temenos Banking platform, to offer diversified connectivity and best execution for banks. Using Wyden, banks can offer crypto and digital asset services through their own trading desk, by automating the crypto trade lifecycle end-to-end, minimize counterparty, operational and market timing risks.
Andy Flury, Wyden Founder and CEO, said “this newly established integration between Wyden and Temenos provides another milestone for the institutional adoption of digital asset trading as it now makes this vital capability available to all Temenos banking clients across the globe.”