For the first time, the Dutch bank ING disclosed information about preliminary testing of a digital asset storage solution that was developed as part of the Pyctor project.
At the Singapore Fintech Festival, ING Blockchain Leader Herve Francois spoke about the work done under the Pyctor project. The project develops infrastructure for storage and post-trading of cryptoassets, and this year was included in the regulatory sandbox of the UK Financial Conduct Authority (FCA).
Pyctor is a joint initiative of ING, ABN AMRO, BNP Paribas Securities Services, Citibank, Invesco, Societe Generale, State Street, UBS and others. Its goal is to help banks develop suitable cryptocurrency solutions. According to François, the project includes layers of security such as multilateral computing and hardware security modules, as well as decentralization.
“The Pyctor Network for Financial Institutions enhances the security of stored digital assets and eliminates single points of failure. We have been guided by these principles when developing pilot projects with our partners, ”he said.
As one of the founders of the Travel Rule Protocol (TRP) for cryptocurrency exchanges and companies, ING also focuses on cryptocurrency services from an anti-money laundering perspective. TRP will help cryptocurrency companies comply with FATF guidelines for tracking digital asset transactions.
Prior to joining the FCA Sandbox in July 2020, Pyctor conducted its first pilot project with DLA, Piper, R3 Tata Consultancy Services and Securosys. It was attended by two asset managers. Their custodians have transferred a token, a digital bond issued by Societe Generale Forge, on the Ethereum testnet.
According to François, the deal confirmed the robustness of Pyctor’s decentralized operating model for secure storage and transfer of assets. As part of the regulatory sandbox, FCA Pyctor conducted another pilot project focusing on its operating model for issuing and managing tokens. François explained that in this case, the smart contract involved in issuing tokens on the Ethereum blockchain was operated by the private network Pyctor.
ING has joined a number of traditional financial institutions that have also announced their intention to launch cryptocurrency services in the near future. SC Ventures, the venture arm of Standard Chartered, announced this week that it is partnering with Northern Trust to develop the Zodia Custody. In addition, according to anonymous sources, the second largest bank in Spain, BBVA, is preparing to enter the cryptocurrency market.
