Blockchain Tech set to “Overthrow” Current Banking System: ABM AMRO Exec

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Blockchain technology is set to “overthrow” the current banking system according to an executive at a Dutch bank. ABN AMRO Bank is working with financial institutions using Hyperledger technology to offer new financial services, including the tokenization of securities.

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Speaking at the Blockchain Expo Europe 2018 at the RAI Amsterdam today, an executive of the bank told delegates that they are offering FinTech companies blockchain-based bank accounts. Niek Van Rens, Head of Innovation at ABN AMRO Bank, made a keynote speech in which he also discussed the benefits of using blockchain.

Van Rens said: “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, including brokers. We will allow a fintech company to have a service with a bank account. We don’t service them with a normal bank account but a white label bank account.”

Van Rens said that the offering is unique and that the bank was the first to create a blockchain bank account. He also said that the bank has one node operating right now which is serving clients and is connected, via an API, to their cash and payments system.

He said: “We can onboard a client within one hour. We will onboard different clients. We will always make the check of client [sic] filtering through our blacklist. Using blockchain technology allows us to create/integrate within our current financial system a new technology which brings future benefits for parties and we have a real tangible solution for new investor firms or exchanges.”

Van Rens said that the bank is looking at tokenizing securities and is running a trial using ERC20 tokens while working with regulators to make sure it will be compliant. Once the securities are tokenized, they will be tradable on the exchange to all whitelisted clients.

He said: “This is an example where we can facilitate tokenization in the securities deposit area. We can create tokens based on all these securities. We’ll have 24/7 trading. We’ll have real-time settlements. We have a low-cost offering. We think we can overthrow the current infrastructure for trading and exchanging securities.”

ABN AMRO has been looking at blockchain technology since 2015. Recently they completed a test with EuroCPP, Euroclear, and Nasdaq using blockchain technology to handle collaterals in margin cells.

Image by cegoh. CC by 2.0

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About Tim Copeland

Tim Copeland is an NCTJ qualified journalist working in London and writing in the cryptocurrency space.

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