Reuter: ING Bank said to be entering into digital assets custody technology space
The custodial project, currently running out of Amsterdam, is still in its early days and is one of the bank’s initiatives on several Blockchains, the underlying technology of cryptocurrencies, the sources said.
ING is known as the largest banking giant in the Netherlands with total assets of over 980 billion USD, which is said to be participating in a crowded cryptocurrency custody market.
According to a report on Wednesday said that “familiar with the problem” sources indicate the ultimate purpose of the initiative is to supply secure cryptocurrency storage facilities for bank customers.
ING Bank sees increasing opportunities related to digital assets on both the asset security token and the original token, the bank said in a written statement to Reuters. ING focuses explicitly on developing the technology behind digital assets to provide its customers with a compliant way to access emerging areas.
Reuters publicly stated that the cryptocurrency custody project is in its infancy, part of a larger effort to develop Blockchain initiatives and provide customers with a compliant way to access the cryptocurrency market.
Big names like ING are exploring cryptocurrencies that could signal the next wave of financial services companies, particularly consumer banks, into space.
Fidelity’s digital asset branch launched a depository service earlier this year, as well as Bakkt, the bitcoin derivatives subsidiary of the Intercontinental Exchange.
Nomura Bank of Japan has also prepared to launch a digital asset depositing solution in cooperation with Ledger. Their solution is expected to launch next year. Germany also recently passed a law, effective January 1, 2020, that allows authorized companies to provide cryptocurrency services, including custody.
According to the company’s announcement, SolarisBank is supported by Visa, a German fintech company, which is also participating in the cryptocurrency custody market.
The move follows a bill that allows European Union banks to buy, hold and sell Bitcoin. The fourth EU money laundering directive stipulates that banks can participate in Bitcoin depository starting from 2020, opening up a new business opportunity for established and potentially simple financial institutions. The process of buying and holding cryptocurrencies is still a challenge for those who are not technically inclined, affecting the growth of the industry.
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