While making a presentation in the course of the Singapore Fintech Festival, ING’s chief innovation officer Annerie Vreugdenhil declared that the company is operating on a trial version of the DeFi (decentralized finance), peer-to-peer offering protocol with the Netherlands Authority for the Financial Markets. The officer reportedly discussed the development, according to Ledger Insights. He stated that they are pursuing a lending venue that would be peer-to-peer with a setup of DeFi. Nonetheless, it will not be based on Bitcoins. The most interesting thing in this regard is to make available lending activities with various types of collateral, or peer-to-peer lending. This means, he added, that the firm is trying to avoid utilizing Bitcoin (BTC) due to the volatility thereof and use rather other possible ways instead.
ING is known as a multinational company for financial services with a Dutch origin and a cumulative amount of assets up to $1 trillion. A white paper that got published during the early phase of this year, has been particularly announced by Aave (a well-known lending protocol being based on Ethereum) that ING is innovative throughout the digital asset industry. Via smart contracts, the borrowers are allowed by Aave to deposit cryptocurrency as collateral as well as receive a loan in stablecoins.
The respective apparatus can be utilized as a conventional asset loan, such as getting a balance to recompense for the daily expenses while one’s funds continuously mount. Similar to the concerns of ING regarding the utilization of volatile assets being collateral, Aave in addition allows the lending as well as borrowing of stablecoins. Presently, the borrowers are permitted to earn nearly 3% interest annually by depositing the DAI thereof into pools of various rates while the lenders recompense up to 4% interest annually.
Although ING admires decentralized finance because of the borderless payments thereof, availability of operations 24/7, as well as speedy transactions, various drawbacks have also been pointed out by the white paper thereof. Specifically, because borrowing, as well as lending protocols, need collateral, the construction of unique money for creativities like financing entrepreneurs and companies is not permitted by them. Nevertheless, considerable interest has been taken by ING in the industry of blockchain during recent years. At 2020’s end, ING collaborated with Blockchain Education Alliance. The company also started operating on the custody of digital assets during 2021 along with discussing the possible developments in various stablecoins during April’s conference of this year.
