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The price of XTZ, the token underpinning the Tezos blockchain, has soared by 11.1% in the past 24 hours, hitting a 12-week high.
According to CoinGecko, XTZ reached $4.38 on Tuesday morning, before sliding to $4.30 by press time.
Currently, XTZ is the 45th largest cryptocurrency with a market capitalization of $3.6 billion.
The uptick in price comes after a group of Swiss-based blockchain and financial companies–Crypto Finance Group, InCore Bank, and Inacta–selected the Tezos blockchain as partner to provide compliant digital financial products.
The collaboration resulted in the development and introduction of a new Tezos token standard for asset tokenization dubbed “DAR-1.”
It is based on the existing Tezos FA2 token standard and enables smart contract-functionality required to support financial markets activity, ranging from anti-money laundering compliance to asset governance.
What is Tezos?
Launched in 2018, Tezos is a proof-of-stake (PoS) platform that allows developers to create decentralized applications powered by smart contracts. Additionally, Tezos puts a strong focus on the governance model to ensure that token holders are actively involved in the decision-making process.
With fast and cheap transactions, Tezos is also making forays into the world of decentralized finance (DeFi) and non-fungible tokens (NFTs), hoping to have its share of the market.
DeFi is an emergent suite of financial services that replicate those offered by traditional banks. NFTs, on the other hand, are tokenized receipts that can underpin anything from artworks, music, and even concert tickets.
In a joint statement, Crypto Finance Group, InCore Bank, and Inacta said that the main reason they chose Tezos was “because its on-chain governance allows upgrades without disrupting or splitting the network.”
InCore Bank also announced that it would become the first B2B bank in Switzerland to launch institutional-grade trading, storage, and staking services for the Tezos network, offering its institutional customers new yield-earning products.
Staking XTZ will let the bank’s clients participate in the governance of the network and earn rewards, with the option available directly via e-banking system.
According to Stijn Vander Straeten, CEO of Storage Infrastructure at the Crypto Finance Group, thanks to the launch of these novel Tezos use cases, “innovative, compliant on-chain financial products [are becoming] a reality today.”