The New York-based financial institution has decided to add soul-linked NFT verification to the Know Your Customer process for its own wallet.
KYC (Know your Customer) is a process that allows the links between companies and users. This procedure is one of the most important requirements to be fulfilled in order to establish commercial relations between both parties.
This process is closely linked to identity fraud control and AML or Anti-Money Laundering controls, as well as the regulatory framework that governs them.
In this way, through KYC, companies know and verify the identity of each of their customers, carrying out a strict compliance with the legal requirements and regulatory framework in force, which exists in most countries of the world.
To a large extent, the first thing it aims to combat is online fraud. And in this opportunity, the neobank Cogni has decided to adopt a new way of complying with this KYC procedure for its customers.
Thus, they have taken the initiative to bring this process with their Web2 scheme to Web3, through the launch of NFTs containing KYC information. launching of NFTs containing KYC information information. These Soulbound NFTs cannot be transferred from one wallet to another, as they contain information inherent to each user. This product will be functional through the proprietary wallet that Cogni launched a short time ago.
This wallet is a non-custodied multichain web3 wallet that allows users to send, receive and exchange both cryptocurrencies and NFTs. The wallet will also be used to mint NFTs linked to the soul of each of its customers, which will contain user information that can be shared with other dApps.
These NFTs are referred to as Web3 Passports, which will be developed on Polygon’s blockchain. With the Passport, those partner dApps will be able to adhere to and comply with KYC requirements without the need to create their own compliance infrastructure.
Simon GrunfeldHead of Web3 Innovations at Cogni, said that the Cogni Passport solves some of the biggest problems in the ecosystem, such as trust and compliance. On the one hand, users and dApps will concentrate the verified identity of each wallet, as long as the user allows it, to reduce fraud and unverified sellers. On the other hand, the Passport offers Web3 companies a solution to meet KYC requirements.
Archie Raviskankar, CEO and founder of Cogni, said that the main objective is to offer customers a better user experience. In this sense, he remarked that there are many curious people who have not entered the decentralization arena, and it is because they have not found a friendly user experience to do so.
Another issue Archie highlighted is security. To comply with this, he said that they have developed a secure and easy-to-use platform, which allows users to keep their digital assets , since they themselves have their own private keys, thus making Cogni one of the most secure platforms.
Written by Luciano Garriga (Tw: luchogarriga) for NFT Express.
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