By
Temitope Olatunji
April 26th, 2024
Crypto Finance Group, InCore Bank, and Inacta are selecting Tezos to enable innovative, compliant on-chain digital financial products through a new token standard for asset tokenization.
The Tezos Blockchain has been tapped to serve as the bedrock for a number of tokenized products as developed by three Swiss firms. The companies including asset management firm Crypto Finance Group, business-to-business transaction bank InCore Bank, and crypto-focused IT firm, Inacta are seeking to build compliant on-chain digital financial products through a new token standard for asset tokenization.
There has been a number of use cases of blockchain technology that cuts across various industries. While the advent of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and other altcoins comes off as the most obvious expressions of blockchain, financial services can be tagged as one of the biggest beneficiaries of the technological innovation. Blockchain and distributed ledger are helping to overhaul settlements and other key aspects of banking.
The new standard dubbed the DAR-1 is built on the Tezos blockchain, an open-source Proof of Stake blockchain network that offers security, reliability, and speed for the next generation of financial services products. The DAR-1 will enable the emergence of smart contracts with functions that makes deploying financial products very easy. The tokenization standard was developed by Inacta, and enabled by the duo of Crypto Finance and InCore Bank respectively.
”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.”
Tezos was notably tapped as the underlying blockchain for the tokenized products because it’s on-chain governance allows upgrades without disrupting or splitting the network. This feature is ideal for financial services firms, as many products are bound to be rolled out in sequence. Tezos is also a highly scalable blockchain that will allow its on-chain products to scale appropriately.
Tezos Products Targeted at Attracting Institutional Investors
As unveiled in the press release shared with Coinspeaker, InCore Bank will also be taking advantage of the Tezos Network to launch staking services or products to attract institutional grade investors into the ecosystem. In staking, users lock a portion of the network’s governance tokens, in this case, Tez (XTZ), in smart contracts so as to participate in the governance of the network.
Rewards generated by the blockchain service are often distributed to the stakers, and the InCore Bank’s version will be no exception. Besides this offering, InCore Bank said it is on track to offer compliant digital asset storage and to support the trading of the Tezos digital asset.
In the coming months, the duo of InCore Bank and Inacta will be launching a number of pioneering digital products to cater to the needs of institutional investors in the space. The products are billed to “open the door to innovative new financial market participants to leverage the attractive investment opportunities on the Tezos blockchain.