Tezos chosen for smart contracts for major European banks
Tezos, a blockchain network that executes peer-to-peer transactions, has been chosen by Crypto Finance Group, InCore Bank, and Inacta to enable on-chain digital financial products using a newly developed Tezos token standard.
Apart from this, InCore bank would also be launching institutional-grade storage and staking services for the native token of the Tezos network, XTZ. This is likely to be a boost for the network in the long run as smart contracts would be developed for managing various banking and financial services including anti-money laundering and asset governance. The new token standard, DAR-1 was developed by Inacta and enabled by a partnership between Crypto Finance and InCore Bank.
”This work by Crypto Finance, InCore Bank, and Inacta is a tangible example of how FA2 on Tezos broadens the potential for tokenization significantly.” Stijn Vander Straeten, CEO of Storage Infrastructure with the Crypto Finance Group, adds, “The launch of these Tezos use cases for the financial sector make innovative, compliant on-chain financial products a reality today.”
The use of Tezos had been decided because the network allows upgrades without splitting the network. This helps to build various financial products like staking on top of the network which is what InCore Bank is looking to offer to its institutional clients. It will become the first Swiss business bank to offer staking services for companies so that they can benefit from specific yield-earning products. This will helps the financial firms to earn rewards and these are generally known to be higher than the interest rates provided by the banks for now and hence such products are in high demand.
The bank has also declared that several such issuances would be made in the coming months in partnership with Crypto Finance so that the trading and staking services on Tezos would continue to grow during this period. The partnership between a blockchain network and some major banks to issue financial products in the crypto world and specifically related staking is likely to be a huge boost to the crypto ecosystem as a whole and likely to act as a catalyst to spur more such innovative products as more banks try to enter into this space. These staking products are likely to be in high demand from institutional investors and this is only going to pull in more banks to follow this path in the future.