DNB and IOTA will collaborate to explore applications of the IOTA Tangle, a “third-generation” distributed ledger (DLT). The 2 parties will be partnering to find new business models relatively to their respective industries. The head of DLT at DNB, Lasse Meholm, declared that one goal of the project is better understand the technology and to let those at the bank who work with customers find opportunities for new use cases.
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.
Head, DLT at DNB
The representative of IOTA, one of the founders, David Sønstebø, reported that he believes this could soften the relationship Norwegian banks have on the crypto industry.
I hope and believe it. The IOTA Foundation will contribute to separating useless crypto-projects from the serious ones.
DNB ASA, Norway’s largest bank and one of the biggest in the Nordic countries had previously been studying blockchain technology through the R3 consortium. As reported by local news E24, DNB also has several ongoing projects with different technologies including Ethereum, Hyperledger, and EOS.
Blockchain technology is being used by the financial institutions around the world. For instance, Canada’s central bank, Toronto Stock Exchange operator TMX Group, and non-profit organization Payments Canada, recently finished tests showing that blockchain technology is efficient for instantaneous securities settlements.