ING working on digital assets custody technology: report

December 12, 2019 13:08
ING is said to have taken up a digital assets custody technology project as part of several initiatives related to blockchain. Photo: Bloomberg

Dutch banking giant ING is working on developing technology to help clients safely store digital assets, Reuters reports, citing people familiar with the matter.

The custody project, which is being run out of Amsterdam, is still in its early days and is one of the bank’s several initiatives around blockchain, according to the report.

ING "sees increasing opportunities with regard to digital assets on both asset backed and native security tokens,” the bank said in a written statement to Reuters.

The bank is particularly focused on developing the technology behind digital assets to give its clients a compliant way to access the emerging sector, it added.

The project comes as established financial companies look into offering custody and other services for both cryptocurrencies such as bitcoin, as well as other types of digital assets.

Many large financial firms are hoping that traditional assets such as bonds or stocks can be turned into digital assets and be issued and transferred using blockchain technology. They believe this could help streamline and reduce costs in some complex capital market processes.

Others have started offering custody of cryptocurrencies like bitcoin and ether, or announced their intention to do so.

The scarcity of custody and other back-office services by brand-name financial companies has been one of the road blocks to more institutional investments in the new asset class, the report noted.

-- Contact us at [email protected]