Financial news

Temenos, an open platform for composable banking, is making strides in central bank digital currency (CBDC) and cloud banking innovation through strategic partnerships and collaborations.

It has announced the successful integration of its banking platform with multiple DLT-based CBDC technology stacks, showcasing its capability to execute end-to-end retail CBDC use cases for commercial bank touchpoints.

This includes central bank token issuance, customer non-custodial wallet creation, CBDC conversion and on-chain transactions. The integration of R3‘s Corda platform and Temenos’ banking platform also highlights the adaptability of the company in embracing the digital currency future.

Another notable project undertaken by Temenos involved the utilisation of Hyperledger Besu, an open-source Ethereum client, and the Norgesbank CBDC sandbox. This project simulated central bank use cases, enabling  the platform to mint tokens and perform on-chain transfers.

As central banks around the world progress with their CBDC strategies, commercial banks are expected to play crucial roles as distributors of CBDCs. They will handle customer KYC, wallet opening, and provide on-off ramps to deposit accounts. Temenos’ successful integration with various CBDC technology stacks positions it as a key player in supporting commercial banks in these emerging systems.

Jeremy Boot, product strategist at Temenos, said: “Temenos is leading the way in CBDC innovation. By actively innovating and driving commercial bank use cases across multiple different technology stacks, Temenos has proven how its open and flexible banking platform can readily adapt to the digital currency future.”

Core banking

In addition to its CBDC advancements, Temenos has also announced the availability of its core banking solutions as software-as-a-service (SaaS), following the integration of its application on Amazon Web Services (AWS). This move expands the options for Temenos clients, as the Banking Cloud becomes one of the most comprehensive SaaS solutions in the industry.

By running composable banking services on AWS, retail, commercial, and private banks gain access to greater agility, higher performance, scalability as well as security. The collaboration between the pair, which began in 2019, has also proven successful with a range of banking sector customers, including tier one banks and digital banks.

The integration of Temenos Banking Cloud on AWS also enables regional coverage and availability worldwide, providing trusted and scalable banking services. It leverages AWS’s high-availability infrastructure across various regions, accommodating data sovereignty requirements without the need for expensive on-site redundant infrastructure.

Prema Varadhan, president product and chief operating officer at Temenos, expressed delight at the growth of SaaS across all regions as well as the strengthened collaboration with AWS.

“We have over 700 clients live on Temenos Banking Cloud across five continents, covering over 30 regulatory jurisdictions, and we take a new bank live on our SaaS platform on average every 10 days. With this collaboration, we offer more choice to our customers and cement our commitment to our multi-cloud strategy, bolstering Temenos Banking Cloud’s existing SaaS capabilities.”