Banks around the world have been eyeing the distributed ledger technology and looking for its suitable applications. Central banks of Canada and Singapore have started working on projects to facilitate wholesale interbank payment settlements. JP Morgan Chase & Co. recently filed a patent for a blockchain-based peer-to-peer payment system. It seems like applications of the new technology are limitless and the financial sector is one of the first to realize this potential. Den Norske Bank of Norway has chosen a very open route, partnering up with IOTA not on a specific project, but as an agreement to explore the applications of IOTA Tangle with the bank’s services.
Den Norske Bank is one of the largest Nordic banks with a market capitalization of over $230 billion. The company has taken an atypical stance towards the blockchain technology. DnB has researched its uses before with R3 consortium. The new agreement with IOTA will give it more possibilities to explore the advantages of the distributed ledger technology. “Among other things, the technology is designed to handle hundreds of thousands of microtransactions per second. We will not let go of the market associated with this ecosystem that arises around these transactions,” – head of DLT at DnB, Lasse Meholm commented. “We have talked to Iota for two to three months now, and think technology is very exciting, and that the foundation has a Norwegian connection is also fun,” – he added.
The bank also underscores IOTA’s role in safeguarding company’s attempts at integrating the technology. As there are many risky activities associated with blockchain and DLT, it is only natural that the bank has some reservations regarding the issues. A representative from IOTA commented on the issue saying “the IOTA Foundation will contribute to separating useless crypto-projects from the serious ones”.
It is yet unclear what areas of business activity the companies will explore together. Blockchain technology can be applied to many financial services. One of the most obvious choices is facilitating transactions among banks and among customers. A long-term partnership between the bank and IOTA could be productive for both companies and for the sector as a whole. If a new business model were to be found, it would be adopted by many companies across the world. With the financial resources of Den Norske Bank and the technologies offered by IOTA, it will not be surprising if the companies find new business styles very soon.
Yusuff Olayode Supoto is a technology enthusiast, book editor, and business developer. He has contributed to Huffington Post, Thrive Global, TheTick Times, The Independent Republic, Oracle Times, among other reliable platforms. Yusuff just fell in love with blockchain, and he’s doing awesome in the space. He roars on many occasions, especially when things go wrong in his country, when Manchester United loses, and when CR7 scores.