Banks around the world approaching crypto and blockchain technology
- Numerous major banks around the world have made big moves towards crypto and blockchain in 2020.
- Three Aussie banks just announced the commercial launch of Lygon, a platform for bank guarantees.
- Banks across the globe continue to launch crypto custody services for institutional and major investors.
Banks around the world have started opening doors to blockchain technology over the last few years, but particularly now, in 2020. The shift towards blockchain comes from the final realization that this is the next generation of financial technology and that it will not go away.
As a result, some of the major banks have already entered coalitions to work on advanced blockchain projects together. One example includes the Commonwealth Bank of Australia (CBA), ANZ Bank, and Westpac. These three partnered up last July to work on a new blockchain-based bank guarantee platform, named Lygon.
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Now, the platform is expanding, as the banks announced its commercial launch. The banks expect that Lygon will be an interesting option to others, as it reduces the time to issue bank guarantees immensely. The usual waiting period can last up to a month. With Lygon, banks can reduce this waiting period to a single day.
Crypto custody is the new major game
Of course, this is still only one example of the banks finally opening up to crypto and blockchain technology. Only about a week ago, the US OCC made headlines by allowing the banks across the country to start offering crypto custody services.
With banks now having a green light to become custodians, not only will more banks open up to crypto, but new institutional investors might approach the industry even further.
Standard Chartered started building its own secure crypto custody even before the green light was given. This was undoubtedly a risk unless its officials had early access to information on what was to come. Regardless, the bank made a move in a new race to start offering custody services and attract the most major investors.
Crypto custody was also recently announced by two more of the largest South Korean banks, Shinhan and Woori. With NH Nonghyup Bank and Kookmin Bank already announcing the same earlier, that raises the number of Korean major banks that now work with crypto from two out of five to four out of five.