Tezos (XTZ) Selected to Support Smart Contracts for Major European Banks

Tezos (XTZ) has been chosen to enable smart contracts for “leading” European banks, according to a recent update.

Crypto Finance Group, InCore Bank, and Inacta announced on August 24, 2021, that they are selecting Tezos for “innovative, compliant on-chain digital financial products.”

As mentioned in the announcement, Crypto Finance, InCore Bank, and Inacta have developed a new Tezos token standard for “asset tokenization” that’s based on the Tezos FA2 standard. InCore Bank also revealed that they’ve launched an “institutional-grade” storage, staking, and trading service for Tez (XTZ), the native virtual currency of the Tezos blockchain.

As previously reported, Tezos is an open source Proof of Stake blockchain network that aims to provide security, reliability, and speed for the next-gen of financial services products.

As noted in the update:

“The DAR-1 token standard on the Tezos blockchain enables smart contracts that provide all of the functions necessary to support financial markets, from anti-money laundering regulations to asset governance. The DAR-1 token standard was developed by Inacta, digitisation experts for technology and finance services.”

The launch is enabled by Crypto Finance, a provider of institutional and professional investor products and services for digital assets, and InCore Bank, a B2B transaction bank.

As mentioned in the announcement:

”This work by Crypto Finance, InCore Bank, and Inacta is a tangible example of how FA2 on Tezos broadens the potential for tokenisation 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.”

Tezos was selected to power the new token standard for asset tokenization because its “on-chain governance” enables upgrades “without disrupting or splitting the network.” This is “highly attractive” to financial services providers, “who will be able to implement seamlessly and offer staking and future innovations directly to their clients,” the announcement explained. This collaboration of major Swiss blockchain and financial players “enables banking designed for the future, minimizing legacy issues that imply additional costs and compromises.”

As stated in the announcement:

“Additionally, InCore Bank will be the first Swiss business-to-business bank to launch staking services for the Tezos network, unlocking new yield earning products for institutional customers. Financial institutions benefiting from InCore Bank’s fully integrated services will be able to offer staking for their clients’ assets seamlessly and effortlessly.”

Staking allows clients to take part in the governance of the network and “earn rewards generated by the network, similar to mining in the Bitcoin network,” the update noted. It can be “initiated directly via e-banking, and clients receive regular statements of the staking rewards,” the announcement explained.

As noted in the update:

“InCore Bank approached Crypto Finance to provide technology services for secure and compliant digital asset storage and to support the trading and staking of XTZ. InCore Bank and Inacta are planning to launch a number of issuances on Tezos together with other participants in the ecosystem throughout the second half of 2021.”

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