China Merchants Bank International (CMBI) has announced its entry into blockchain through a collaboration with Nervos Network.
CMBI partner with Nervos Network
The CMBI is a “wholly-owned” subsidiary of the China Merchants Bank. The bank is a major Chinese bank that is owned by corporate entities and has headquarters in Shenzhen.
Through the collaboration, the two will develop and deploy decentralized applications (dApps) for financial services. Moreover, the two will act as a strategic ecosystem partner in the financial services industry.
The Nervos Network will guide CMBI in the blockchain ecosystem, assisting them in their blockchain exploration. Nervos would be providing a decentralized architecture for supporting dApps. CMBI will use Nervos to scale its blockchain-based services without reducing their efficiency or security.
The Nervos Network is a public blockchain ecosystem. The network is a collection of various protocols that allow it to avoid problems faced by major blockchains such as Bitcoin and Ethereum. The network’s layer 1 is a common knowledge base (CKB) that enables users to store any cryptocurrency with the security and efficiency of Bitcoin while also supporting smart contracts. The layer 2 scaling makes the entire network much more efficient.
The financial services industry is changing
Nervos Network’s Co-founder Kevin Wang noted the presence of Libra. He stated that entry of high-profile companies into blockchain technology “foreshadows a shift in the financial services industry.” He then remarked that its partnership with CMBI would play a significant role in modeling the future of permissionless finance.
CMBI previously participated in the first round of financing of Nervos. The financing round raised twenty-eight million dollars ($28M) from various investors, including Sequoia China and Polychain Capital.