Bank Smart Contracts
24 August 2021, Zurich, Switzerland — Crypto Finance Group, InCore Bank, and Inacta have selected Tezos for the development of innovative, compliant, on-chain digital products for the financial market.
At the center of these products a new Tezos-based token standard called DAR-1 has been developed for asset tokenization based on the Tezos FA2 standard.
Additionally, InCore Bank announced the launch of institutional-grade storage, staking, and trading services for Tez (XTZ), the native cryptocurrency of the Tezos blockchain.
The DAR-1 token standard on the Tezos blockchain enables smart contracts that provide all of the functions that are necessary to support financial markets in compliance with regulations.
For the tokenization of assets on Tezos for example, all limitations that are necessary to comply with regulations are registered and enforced on the blockchain through sets of smart contracts.
The DAR-1 token standard was developed by Inacta, digitization experts for technology and finance services.
The launch is enabled by Crypto Finance, a leading provider of institutional and professional investor products and services for digital assets, and InCore Bank, a business-to-business transaction bank.
”This work by Crypto Finance, InCore Bank, and Inacta is a tangible example of how FA2 on Tezos broadens the potential for tokenization significantly.
The launch of these Tezos use cases for the financial sector make innovative, compliant on-chain financial products a reality today.”
– Stijn Vander Straeten, CEO of Storage Infrastructure with the Crypto Finance Group.
Tezos was chosen to power the new token standard for asset tokenization, because its on-chain governance allows upgrades without disrupting or splitting up the network.
For tokenized assets that are registered on a blockchain, hard forks cause a serious risk. These assets are heavily regulated and these regulations also need to be enforced on their tokenized form.
A split chain caused by a hard fork, would mean that these tokens that are supposed to have fixed circulating supplies, would continue to exist on both chains and double in numbers.
Very uncomfortable choices would needed to be made by the issuers of these tokens with regulators watching their every move. Tezos fixes this. Read more about these issues and how Tezos fixes this here.
This is highly attractive to financial services providers, who will be able to implement applications seamlessly and offer staking and future innovations directly to their clients.
This collaboration of leading Swiss blockchain and financial players enables banking designed for the future, minimizing legacy issues that imply additional costs and compromises.
Opening the door for institutional customers: integrated staking services
Additionally, InCore Bank will be the first Swiss business-to-business bank to launch staking services for the Tezos network, unlocking new yield earning products for institutional customers.
Financial institutions benefiting from InCore Bank’s fully integrated services will be able to offer staking for their clients’ assets seamlessly and effortlessly.
Staking lets clients participate in the governance of the network and earn rewards generated by the network, similar to mining in the Bitcoin network. It can be initiated directly via e-banking, and clients receive regular statements of the staking rewards.
InCore Bank approached Crypto Finance to provide technology services for secure and compliant digital asset storage and to support the trading and staking of XTZ.
InCore Bank and Inacta are planning to launch a number of issuances on Tezos together with other participants in the ecosystem.
These launches establish the named partners as pioneers in the digital asset industry and open the door to innovative new financial market participants to leverage the attractive investment opportunities on the Tezos blockchain.
About InCore Bank
InCore Bank AG is a financial service specialist bank and a banking services for other banks based in Zurich.
This combination of specialties makes it a one-stop business-to-business transaction bank founded in 2007, providing banks, security dealers, and fintech companies with first-class transaction banking and outsourcing services.
As a Swiss corporation with a banking- and securities dealer licence, InCore Bank offers a comprehensive and modular range of services covering transaction banking for traditional and digital assets, business process outsourcing and other services.
This offering enables other market participants to reduce complexity and focus on their core business.
Founded in 2009 and based in Zug, Inacta AG is an independent Swiss IT company that combines the expertise of more than 80 experienced digitization experts.
Inacta provides consulting, project management and software development services to established companies and start-ups. As an early adopter, it understands technologies such as Blockchain or AI and uses them in a targeted manner.
Inacta is a founding member of the Crypto Valley Association and the Swiss Blockchain Federation.
As initiator of the cryptovalley directory, the Blockchain Summit and the Blockchain Competition, it promotes technology start-ups and their networking with established companies.
About the Crypto Finance Group
Crypto Finance AG is a financial services provider specialised in crypto assets. The range of activities of Crypto Finance AG, and its subsidiaries, includes asset management, brokerage and crypto asset storage infrastructure.
Crypto Finance Group provides asset management with the first regulated asset manager for collective investments for crypto asset funds authorised by FINMA.
They also provide brokerage services for 24/7 crypto asset trading as a FINMA-licenced securities firm. Additionally, they provide crypto asset storage infrastructure and tokenization solutions.
Since its founding in 2017, the group has been recognised several times for its qualities in the industry, including as a Crypto Valley Top 50 blockchain company, Top 100 Swiss Start-up, and 2019 Swiss FinTech Award winner.