Tezos has been chosen as the preferred blockchain platform to develop digital financial products that comply with regulations. Insecta, Encore Bank, and Crypto Finance Group made up the partnership that chose Tezos, and the platform is hoping to deliver via a newly developed token standard titled DAR-1.
Tezos to enable smart contracts for European banks
Incore Bank, a business-to-business transaction bank in partnership with Inacta and Crypto Finance Group, has singled out Tezos, an open-source proof-of-stake (PoS) blockchain network, to offer smart contracts for a variety of on-chain digital financial products or uses as the case might be.
Together with Tezos, the group has launched a new standard for tokens called DAR-1, that will allow smart contracts to perform functions needed to support finance. These functions include compliance with anti-money laundering regulations, handling governance, and supporting asset management activities.
DAR-1 is developed by Inacta, an independent IT company specialized in software development and blockchain promotion. DAR-1 is made based on Tezos FA2, a token contract interface for single and multi-token smart contracts. Now, both the Incore Bank and Inacta will start issuing assets in the DAR-1 tokenization standard through the Tezos network later in the year.
Incore Bank has also revealed a new variety of services in addition to launching the DAR-1 token standard. They did this while partnering with Crypto Finance Group, a FINMA-licensed provider of professional investor products and services for digital assets. The new regulatory-compliant services include storage, staking, and trading services for Tez (XTZ), which happens to be the native token of the Tezos blockchain.
Now that Incore Bank has launched staking services for the Tezos network, the direct implication of that is that financial institutions that use Incore Bank’s services will also be able to offer to stake for their clients’ assets directly via eBanking.
Transforming Traditional Banking
The Tezos platform hopes to provide the safety necessary to protect assets and other high-value use cases at the protocol and application layers, thereby making it applicable in banking.
In comparison to other established chains like Ethereum, which is undergoing its ETH 2.0 upgrade, Tezos, together with Cardano, prides itself as a ‘third-generation blockchain, known colloquially as Blockchain 3.0. Unlike Ethereum in its present form, Tezos hopes to provide higher transactions and create mechanisms designed to handle network congestion.