The banking industry is a well-known sector of interest for blockchain application, with $1.7 billion spent per year lately. Banking institutions have doubled their blockchain initiatives in 2017, with cost reduction being the biggest driver of investment. While most of these investments came from established financial institutions, fintech startups have also been investing to build blockchain platforms hoping to disrupt the finance industry. One of these startups is FINX which is building a decentralized bank powered by the Ethereum blockchain that would offer affordable and secure asset storing and trading solutions to its customers. The startup recently announced it would launch the blockchain banking platform by the end of the year.
Supported by former leading actors of the banking industry, the upcoming blockchain banking platform will be launched in multiple countries, starting with Switzerland. FINX hopes to eventually make this platform a full-fledge decentralized banking system involving asset and transaction management. is looking to obtain a Swiss asset management license and a Swiss banking license in order to start operating in the country but has already acquired a Swiss asset management company.
According to one of the co-founders of FINX, Victor Ho:
“Blockchain technology is set on a path to disrupt the banking industry on a scale not seen since the inception of centralized banking system. Our goal is to have a global footprint and be among the first few who embrace this revolutionary technology in finance sector”.
FINX embraces blockchain technology – as other companies such as UK fintech startup Billon does to work with local banks to store bank transactions. As previously mentioned, major financial institutions around the globe such as JPMorgan Chase, Goldman Sachs, HSBC Bank, and Bank of America have also invested heavily in this area. In 2017, a total of 12 banks in China, including Bank of China, China Construction Bank, and Agricultural Bank of China, began to leverage blockchain technology to handle the procedures of borrowing, invoicing, and identity certification to increase revenues, improve work efficiency, and reduce costs and expenditures.
The FINX blockchain platform will notably offer services including multi-asset decentralized storage for cryptocurrencies and fiat currencies as well as a decentralized trade settlement system to exchange digital and real assets. With time, it will also launch structured financial product arrays, such as Bitcoin Futures or ETFs.
In its project brief, the company highlights the problem of current banking system, which is “still flawed as it requires customers’ trust to deposit their money or assets with a third party – the bank”. FINX aims to combine the ideology and technology enabled by both Bitcoin and Ethereum to create the world’s first comprehensive decentralized banking platform.