Tezos Selected To Enable Smart Contract Development For Top Swiss Banks
Three of the largest Swiss digital assets-focused financial institutions, Crypto Finance Group, InCore Bank, and Inacta have developed a new token standard for asset tokenization on the Tezos blockchain.
The three, which are leading companies in blockchain-based financial services offerings in Europe, will use the token standard to support the development of innovative, compliant, and on-chain- digital financial products.
“We chose Tezos to power the new token standard for asset tokenization because its on-chain governance allows upgrades without disrupting or splitting the network.”
The announcement has led to a 40% spike in the price of XTZ over the week, which reached a high of $4.38 on Tuesday, before slightly retracing to $4.30 at the time of writing, according to CoinGecko data.
Tezos has a market capitalization of $3.8 billion which ranks its native cryptocurrency XTZ at position 37 on CoinMarketCap. XTZ is also one of the currently well-performing altcoins, following a steady price gain since late June when the price was around $2.49.
Tezos Streamlines Tokenization for Financial Services Providers
According to the press release, the new token standard DAR-1 is based on the TEZOS FA2 standard. The FA2 is also a token standard that enables the support of different token types on a unified smart contract interface.
“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 three partners said that the feature is very attractive to financial services providers since it allows them to seamlessly offer and implement staking services and other future innovations directly to their clients.
“This work by crypto finance InCore Bank and Inacta is a tangible example of how FA2 on Tezos broadens the potential for tokenization significantly. The launch of these Tezos use cases for the financial sector make innovative complaint on-chain financial products a reality today.”
DAR-1 was developed by Inacta, which specializes in the digitization of financial services, while Crypto Finance Group and InCore facilitated the launch. Crypto Finance Group offers digital assets services and investment products to institutions and professionals, while InCore enables B2B bank transactions.
InCore and Inacta Launch More Issuances On Tezos
InCore Bank also announced the launch of trading and staking services on Tezos, making it the first Swiss Bank B2B to launch a staking service on Tezos for institutional investors.
The Bank said that it will launch other projects on Tezos in partnership with Inacta and other stakeholders inside the ecosystem that will make Tezos more attractive to digital assets and financial services providers.
“These launches establish the named partners as pioneers in the digital asset industry and open the door to innovate new financial market participants to leverage the attractive investment opportunities on the Tezos blockchain.”
Tezos was launched in 2018 and defines itself as a security-focused and upgradeable open-source blockchain ecosystem that is built to last and designed to evolve.
It has a built-in mechanism that ensures active community governance and participation by allowing users to participate in proposing, evaluating, and approving changes or upgrades to the network.
Read more: https://zycrypto.com/tezos-selected-to-enable-smart-contract-development-for-top-swiss-banks/
Text source: ZyCrypto
