Dutch bank testing DeFi P2P lending protocol

Dutch bank ING established a partnership with the financial authorities to test the P2P Defi concept based lending project. 

 The Authority for the Financial Markets (AFM) of the Netherlands has developed a Decentralized Finance (DeFi) peer-to-peer (P2P) lending program. And now they are testing it in collaboration with the Dutch ING Bank. 

During a presentation at the Singapore Fintech Festival, Annerie Vreugdenhil- ING’s Chief Innovation Officer- said that they will not consider bitcoin-like volatile assets as a collaboration in this initiative.

The chief officer stated: 

“We are looking into peer-to-peer lending in a DeFi kind of setup. But then not on Bitcoins.” 

Further, the chief officer asserted that there are other options available for them to use instead of the use of Bitcoin like volatile then why do they need to go with Bitcoin. However, Bitcoin is a crypto standard but it will always remain better to go with the best alternative.

Experts believe that they are considering the use of stablecoins assets because these have more trust against Bitcoin & other crypto assets in terms of stability. 

Before this year, ING revealed that they are working on a  ” peer-to-peer lending protocol” project. Later in July of this year, it became evident that the crypto project AAVE team is working with this institution in the permissioned lending pool. And it is named AAVE arc. 

Fire blocks- digital assets custodian firm, announced the lending protocol in September. And said that BNY Mellon is an investor. 

Aave’s permissionless protocol 

In the existing Aave’s permissionless protocol, users can put their funds and can earn interest. This version of Aave is based on the volatile crypto assets collateral, where users can take 85% of the value of the collateral. 

But the new initiative of AFM & ING may bring stablecoins based lending protocol. 

Read also: Coinbase ready to compete Metamask like project with standalone browser extension