Tezos chosen for smart contracts for major European banks

Karthik Subramanian

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.

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”