According to an executive at the Dutch financial institution ABM AMRO Bank, the banking system that we currently know may be overthrown by blockchain technology. The company is already working with financial institutions that use Hyperledger technology with the intention to offer new financial services and products, including the tokenization of securities.
An executive of the bank talked a the Blockchain Expo Europe 2018 that took place in Amsterdam on June the 28th, and said that the bank told delegates that they are offering FinTech companies blockchain-based bank accounts.
Niek Van Rens, Head of Innovation at ABN AMRO Bank, explained that they are working with different blockchain solutions. In the future, they can offer integrated offerings to new clients, including exchanges, PSPs and more.
About this situation, Van Rens explained:
“We created banking as a service solution. We think this is a way we can service new clients, new exchanges, new PSPs with an integrated offering. Our offering is based on a solution for our clients, inducing brokers. We will allow a fintech company ot have a service with a bank account. We don’t serve them with a normal bank account but with a white label bank account.”
At the same time, he explained that the offering is unique and that the institution is at the forefront of innovation by creating a blockchain bank account. Moreover, he said that the bank has one node operating which is currently helping clients and is connected using an API to the cash and payment system.
Blockchain technology will bring a real and tangible solution to investors, exchanges and other interested firms. Moreover, blockchain will be integrating new services to the current financial system.
At the moment, the ban is looking at tokenizing securities and is working with ERC20 tokens and working with different regulators all over the world. The bank will be offering 24/7 trading and real time settlements at low costs.
Since 2015, ABN AMRO has been looking at blockchain technology, which means that it has experience in the market and understand how it works. Additionally, it has completed a test with EuroCPP, Euroclear, and Nasdaq using distributed ledger technology with the intention to handle collaterals.
Other banks, including JP Morgan or Santander Group are working with blockchain technology and different crypto-related services. The main intention is to integrate the latest technologies and avoid losing part of the market against non-traditional financial services like the ones offered by virtual currencies and blockchain companies.