The major Dutch ‘big four’ bank ABN AMRO just launched a new service where bank accounts are issued to individual clients via the blockchain. This comes as an alternative to escrow accounts and proves that ABN AMRO is one of the few banks shifting their gears in its blockchain endeavor.
The Amsterdam-based bank has announced the new service publicly. They said that this revolutionary technology will entrust client funds and directly connect with the bank over a blockchain.
If you heard about escrow, you probably know that it is used by fund managers without any banking licenses. The escrow accounts therefore see clients transfer funds into these accounts before the organization accesses it. With the new blockchain product, however, the need for escrow accounts with the transfer of funds between the organization and clients won’t be there.
The ABN AMRO Clearing Bank (AACB) will be the institution to dramatically cut down the administration costs and bring this new blockchain technology to life. This will ‘eliminate escrow account management costs’ according to the announcement.
It seems that ABN AMRO already got its first client in the field. The Amsterdam-based FinTech stock exchange operator Nxchange is the name of it – which is an exchange enabling direct securities trading between companies as well as investors.
The CEO at Nxchange stated that “The solution simplifies the way investors can invest in businesses and other issuers. Blockchain technology also offers a wider future perspective to facilitate transactions in multiple asset categories in distributed networks.
Let’s hope that more banks adopt this technology in the future.
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