ABN AMRO remains one of the largest financial institutions in the world today. The Dutch bank also sees a lot of merit in Bitcoin technology, which is a positive development. In a press release issued yesterday, the bank stated how they are launching a new pilot related to blockchain technology. Torch, as this application is called, will be used to record and exchange real estate transaction information.
Another Blockchain Pilot Project In The Works
Financial institutions are always eager to share news about their current and upcoming blockchain development projects. The technology holds a lot of merit and will change the way we think about communication, finance, and many other things. ABN AMRO wants to explore what distributed ledgers can do for the real estate sector in the coming years.
As most people are well aware of, real estate transactions are usually conducted between multiple parties. In fact, it is virtually impossible to do so without middlemen, which only add more delays and costs to the transaction. Through the Torch blockchain app, all of these parties can efficiently conduct business without being bogged down by administrative work.
This new blockchain trial is launched in collaboration with IBM,w ho continue to play a major role of importance in the blockchain sector. Lease contracts can now be entered in the Torch app, assuming they are financed by ABN AMRO. All information can be validated by the client’s relationship manager. Valuation of properties can all be done digitally, and the report is finished with both the bank and the client.
Since blockchain technology establishes a trust factor between all parties, the project can be of significant value to real estate. Moreover, the Torch application uses smart contracts to automate most of these process, speeding up valuation and transactions in general. Even for such a logistic-heavy multi-party process, blockchain technology can make life a lot simpler.
The commercial sector is a prime target for ABN AMRO and their blockchain projects these days. They launched several pilot projects over the past few years. This latest addition is another example of how ABN AMRO wants to offer innovative solutions to any commercial industry. For now, it remains unclear what type of blockchain solution will be used, but it appears a private distributed ledger will be their preferred weapon of choice.
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