The head of the corporate division at Deutsche Bank recently indicated that the banking giant is “assessing” IOTA’s tech to drive innovation in the financial sector.
This news was shared by Frank Schwab, strategic advisor and board member at Gulf International Bank. He tweeted on Sep. 2 that Deutsche bank is looking into the possible implementation of the Tangle in its operations.
Some of the possible use cases for IOTA in the banking sector could be to facilitate machine-to-machine (M2M) economics and internet of things (IoT) payments.
IOTA’s Tangle can be used in a wide range of applications and has already established use cases in sectors such as E-commerce and the automotive industry.
The project can greatly enhance the banking sector according to Wolfgang Wössner, a professor for digital finance and banking at DHBW Mosbach.
Wössner noted that IOTA’s IoT tech would offer innovative sales and financing solutions like assets-as-a-service or models of embedded finance.
Deutsche Bank seems set to embrace IOTA’s Tangle, having earlier noted that the project has solved the fundamental problems of blockchain due to its high scalability and low costs.
Tangle Drives Innovation in the Energy Sector
The interest to adopt IOTA by Deutsche bank clearly shows that more companies across the globe recognize the potential of the Tangle to transform in their business processes.
The IOTA project got a major boost on Aug. 5, when the European Union selected it as a key Innovator in the H2020 +CityxChange research program.
The program aims to support IOTA’s research in the development of the IoT and its possible applications in the energy trading marketplace.
The IOTA project will reportedly get funding of up to 80 billion Euro until the end of 2023 to research how it can tap into distributed ledger tech (DLT) to develop an energy marketplace that enables P2P energy trading in a decentralized manner.
The blockchain project has teamed up with Powel (Utility Analytics), smart power (Smart Energy Grids) to accomplish this goal.
Together, the three projects will carry out research on how local energy markets can be implemented in Smart Cities via the creation of positive energy blocks and districts (PEDs).
IOTA’s Tangle currently has the capability to facilitate the automated communication of smart meters to allow users to request and access energy without any middlemen.
IOTA Offers Diverse Use Cases
Besides the recent possible applications for the banking and energy sectors, IOTA offers many more far-reaching applications in practice.
Case in point, IOTA has been referenced in more than 188 patents from 76 different startups in recent months, according to the project’s patent tracker.
With the advent of IOTA 1.5 which radically improves the scalability and security of the ecosystem, many companies have shown interest in adopting its applications, including tech giants like Siemens AG.