The Dutch bank ING launches a cryptocurrency custody service

By Roberto D. | CryptoFarm | 13 Dec 2019


Reuters reported it, however the news does not surprise us that much, ING, in fact, is a group famous for its ability to push hard on the accelerator of innovation; the Dutch bank, according to the news agency, has developed a cryptocurrency custody service and, probably, this is only the first of a series of steps aimed at bringing the group into the blockchain services market. ING itself had already stated for some time that it saw excellent growth opportunities in the blockchain industry, so it is no wonder that it is investing in the sector; however, the bank refused to comment on the rumor raised by Reuters and simply reiterated its interest in blockchain technology. Nowadays it seems that custody services are the sector in which traditional finance is most investing in order not to be overwhelmed by the wave of blockchain innovation; after bakkt, in a few months, even the US financial services giant Fidelity Investments launched its custody service in mid-October, while yesterday it was SolarisBank, a fintech company based in Berlin, to announce the creation of a branch ad hoc to provide a custody solution for digital resources.

In addition to traditional finance, cryptocurrency exchanges, which risk collapsing following the rise of DEX and cross-chain interoperability, are investing in this type of service, as shown by the creation of custody services by two of the major players in the US market such as Coinbase and Gemini. After all, large companies that intend to operate with cryptocurrencies cannot set aside their funds on a wallet like private users do, but they need to use third-party and independent platforms both for security reasons and for reasons of transparency and audit. ; that of custody services, therefore, is one of the few sectors not destined to be cannibalized by blockchain technology, but rather sees the blockchain reaffirming its sense and its utility. On the other hand, these services are extremely useful, at least at this stage, even for ordinary people who may wish to begin to approach the world of cryptocurrencies but do not have the minimum computer skills necessary to do so; we are therefore in an intermediate phase in the process of mass access to cryptocurrencies, in which technology, despite having as its ultimate goal to reduce the need for intermediaries in money management, finds in the intermediation an opportunity to expand its market of catchment. Here is also explained why the banks that want to resist the lethal grip of cryptocurrencies have no other choice but to promote their use through the implementation of custody services; how to say, if you can't defeat him, make him a friend.

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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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