China Merchants Bank International (CMBI), a state-owned subsidiary of China Merchants Bank (CMB), recently declared its partnership with Nervos Network, a blockchain network, to jointly develop and launch decentralized applications (DApps) for financial services.
Common Knowledge Base (CKB), Nervos’ public, permissionless layer-one protocol, provides a secure and trustless foundation, while its layer-two solutions enable unlimited scaling through smart contracts.
As CMBI explores blockchain technology to enhance its products and services, the firm plans to utilize Nervos Network and its native CKB architecture to power future decentralized finance applications.
According to Nervos Networks, Kevin Wang, the co-founder, said that this partnership will enable CMBI to create a decentralized ecosystem with DApps that are both retail and institution facing. However, CMBI is exploring the tokenization of assets, payments, identity verification, trading and lending through blockchain.
“Basically what has mostly been under the traditional finance umbrella, they [CMBI] are going to experiment to put into decentralized applications.”Kevin Wang
Permissionless Blockchain for Financial Apps
According to a spokesperson, earlier, CMBI has experimented with permissioned blockchain for internal purposes, while the partnership with Nervos is CMBI’s first project to tap into the public blockchain space.
The spokesperson stated:
“Compared to permissioned blockchains, the permissionless ones are ideal for inter-bank or external client-facing applications where security and multi-party verification are needed.”
Wang has described CMB as early adopters of technology, saying:
“They are way ahead of all the other banks that we know of, so they actually have done a lot of research internally, build pilot programs in that, and willing to jump in on the public side.”Kevin Wang
Source: Asia Blockchain Review