Tezos just scored a home run as far as adoption is concerned after securing a deal with three Swiss-based fintech and banking companies that will use its blockchain to roll out their financial products.
The three financial institutions which include Incore Bank, Crypto Finance Group, and Inacta, chose Tezos as the blockchain infrastructure on which they will roll out their financial products. The development is part of a collaboration between the three institutions which seek to leverage the opportunities and benefits of blockchain to offer products that are regulatory compliant. The rollout will take place via the newly created token standard called DAR-1 which Tezos launched in collaboration with the three companies.
The new token standard facilitates the proper integration of smart contracts with financial instruments through support for asset management, governance, and anti-money laundering measures. The upcoming assets launched through the partnership will target professional and institutional investors. Incore Bank will also provide a new investment facility for its clients by launching a staking service through which its clients can stake and earn passive income on the Tezos network.
Such a business-to-business development will act as a bridge through which more customers in the financial industry can access the Tezos blockchain. It also represents one of the first deals of its kind that aim to overcome the regulation problem, making it highly attractive to traditional finance institutions. The collaboration between Tezos and the three companies is equivalent to opening the floodgates for heavy investment to flow in.
The collaboration will provide more value to the Tezos blockchain while also providing the publicity necessary to attract more potential customers in the future. Being selected as the ideal blockchain for financial services is a big deal for Tezos because it highlights the attractive nature of its network.
Many of the top 50 cryptocurrencies by market cap were in the red today as the market correction continued for yet another day. However, the recent announcement about Tezos being selected by the three companies allowed the coin to ward off the bears, for the time being, making it one of the few coins in the green today.
XTZ is currently trading at $4.59 after a 2.07% gain in the last 24 hours while its weekly gains increased to 33.96% possibly courtesy of the announcement. It has however experienced some retracement considering that it traded as high as $5.40 a few hours ago. Perhaps the recent development will provide some more bullish momentum to push it back above the $5 level.
Source: Binance
The XTZ token experienced a massive surge in buying volume during yesterday’s trading, thus accounting for the price spike after news broke about the deal with the financial institutions. The impact of the deal will likely encourage more investment in the cryptocurrency for the next few weeks, potentially fueling some more gains especially if the crypto market bulls resume their charge. The deal might provide more exposure for Tezos and will likely encourage other institutions to embrace it, a situation that would be ideal for XTZ’s growth.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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