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Norway’s Largest Financial Services Group Partners With IOTA Foundation to Explore Distributed Ledger Technology

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The IOTA Foundation and DNB ASA, the largest financial services group in Norway, have come up with a Memorandum of Understanding according to a report from a press release on May 31st. According to this report, IOTA and DNB will now join hands in exploring the application of the IOTA Tangle, a revolutionary third generation distributed ledger (DLT).

Getting a Better Understanding of Blockchain

The press release details that the two parties will form a working partnership, hoping to find new business models across their respective fields. The head of DLT at DNB, Lasse Meholm, intimated that one of the project’s goals is to understand the technology much better while at the same time letting those who work with clients get better opportunities to use it even more in other instances. He added:

Among other things, the technology is designed to handle hundreds of thousands of microtransactions per second. We will not let go of the market associated with this ecosystem that arises around these transactions.

Hopes For Common Ground Between Banks and the Crypto Industry

David Sonstebo, one of IOTA’s founders said that he hopes that this move will help soften the lukewarm relationship between the crypto industry and Norwegian banks.  He says he has full confidence in the potential of the project and believes that the IOTA foundation will contribute to helping separate useless crypto projects from serious ones.

It was only early last month that that a crypto exchange in Norway lost its case against Nordea Bank for the closure of their account. Nordea  had closed Btmynt AS’s account initially, over concerns that there were inadequate anti-money laundering mechanisms in place. Notably, DNB ASA, the largest bank in Norway, had been researching the use and application of blockchain technology through the R3 consortium. This also included various ongoing projects with other technologies, including Hyperledger, Ethereum and EOS.

Blockchain technology has already attracted the attention of various financial institutions all over the world, which are now exploring possible use cases of this technology. For instance, there has been a recent experimental collaboration by the Toronto Stock Exchange operator TMX group, Canada’s central bank and non-profit organization Payment Canada. These tests showed that blockchain technology works effectively for instantaneous securities settlements.

Image Credit: Deposit Photos

 

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