ING’s Chief Innovation Officer, Annerie Vreugdenhil, announced during a presentation at the Singapore Fintech Festival that the company is working on decentralised finance.
“We are looking at peer-to-peer lending on DeFi, but not on Bitcoin or other volatile cryptocurrencies.” – Vreugdenhil said.
ING manages a total of $1 trillion in assets. In an article published earlier this year, the company mentions the AAVE protocol, which is built on the ETH network. AAVE allows users to deposit and earn stablecoins or other cryptocurrencies. Currently, borrowers can earn around 3% interest per year.
“Automating business processes in AAVE on a public blockchain, without permissions, has many advantages over traditional money markets, such as transparency, accuracy and speed. However, we argue that the cost efficiency and improved security benefits of automating money markets with smart contracts are debatable and introduce new technical risks.” – ING argues.
It carefully weighs up some of the pros and cons of DeFi, concluding that “the best of both worlds can be achieved when centralised and decentralised financial services work together”.
In late 2020, ING became more interested in blockchain, with the company additionally looking into working on cryptocurrency storage. The Pyctor project, to which ING belongs, offers a coin storage solution. Its participants include State Street, BNP Paribas, Forge, UBS and others.
Project DeFi is targeting retail customers because “there is definitely an appetite for it,” says Vreugdenhil.
“Corporates are much more critical because they can’t afford it. Speculation is not their business.” – she concludes.
09-11-2021, Mr.Advice TEAM