ABN AMRO Jumps On Blockchain Bandwagon

Josh O'Neill

21 November 2016

is the latest bank to jump on the blockchain bandwagon as it joins forces with Delft University, the Netherlands' oldest technological university, and 14 other partners on a project that aims to apply blockchain technology to the logistics sector.

Blockchain technology, a virtual distributed ledger of transactions shared peer-to-peer, can record ownership across a public network of computers rendered tamper-proof by advanced cryptography. It is already known as the platform for the controversial digital currency bitcoin.

The TKI Dinalog project is reportedly the first “concrete” blockchain project in which various parties in the logistics chain will collaborate, according to ABN AMRO.

It will be carried out over the next two years, during which time partners will design, develop and implement a new information infrastructure that uses blockchain technology to connect operational information, financial flows and contracts.

The first port of call will be to construct an infrastructure that allows blockchain technology to be used for logistical purposes and to enable tests to be performed using real transactions, ABN AMRO said in a statement.

Meanwhile, interest in the potential uses of blockchain technology throughout the financial services industry is burgeoning worldwide.

Last week, the Monetary Authority of Singapore embarked on a journey with R3, a blockchain technology company, and a consortium of financial institutions to test the concept of the use of blockchain to process interbank payments.

Earlier this month, a large Korean financial institution and a Nordic bank announced their collaboration with blockchain technology companies in a bid to facilitate virtual currency transactions.

The TKI Dinalog project is part of a broader effort to establish a national Blockchain Centre of Excellence, ABN AMRO said.

“We are applying blockchain technology to the financial routes in logistics, but that's just the start,” said Martijn Siebrand, programme manager. “I can see this development culminate in the logistics sector of the future, more coherent and smooth all across the chain.”