Permissionless blockchain network project, Nervos announced in a press release Thursday, that it has partnered with state-owned China Merchants Bank International (CMBI) to develop decentralized applications for financial services.
The move will see CMBI enhance its products and services through Nervos’ network, as well as tap the project’s native Common Knowledge Base (CKB) architecture to power future decentralized finance (DeFi) applications, which could be deployed to serve some of its clients.
With Nervos’ unique layered architecture, CMBI hopes to scale its services on the network, without interfering with its security or performance. Notably, CKB layer one protocol allows for a secure and trustless foundation, while the layer two solutions enable unlimited scaling via smart contracts.
While commenting on the need for the implementation of blockchain in financial institutions, Kevin Wang, co-founder of Nervos Network, said:
“The recent wave of high-profile blockchain projects such as Libra and JPM Coin foreshadows a shift in the financial services industry. As more financial institutions and enterprises get on board with blockchain technology, our partnership with CMBI will play an important role in modeling the future of decentralized finance and accelerating mainstream blockchain adoption.”
The partnership with Nervos is said to be the bank’s first venture into the public blockchain space, enabling CMBI to explore a series of features, including tokenization of assets, payments, identity verification, and lending, and trading.
Unlike the permission blockchains, going with a permissionless network is considered ideal for inter-bank and external client-facing applications with a high need for security and multi-party verification.
According to Nervos’ spokesperson, CMBI previously experimented with permission blockchain; however, it was solely for internal purposes.
Now, though, CMBI would as act as a strategic ecosystem partner to help Nervos expand its blockchain network within the financial services industry.
In another development regarding banks adopting blockchain technology, Coinfomania recently reported a partnership between Lloyds Bank Commercial Banking and Komgo, a startup providing a blockchain-based solution that addresses particular challenges facing international commodity trade business.