Banks Complete Trial Of KYC On R3’s Corda Blockchain Platformbr>
More than three dozen member firms of the R3 blockchain consortium have completed over 300 transactions on a know your customer (KYC) application built on R3’s Corda blockchain platform.
A total of 39 firms participated in the four-day collaborative trial, including BNP Paribas, KB Kookmin Bank, China Merchants Bank, Shinhan Bank, Societe Generale and Deutsche Bank. Regulators and central banks also participated in the project. These inlcude Banco de la República (Central Bank of Colombia), Federal Reserve of Boston, Superintendencia Financiera de Colombia, and Superintendencia de Banca Seguros y AFP de Peru.
The trial saw the participants deploy and run a total of 45 nodes in Microsoft Azure to carry out the transactions in 19 countries across eight time zones. Using a CorDapp designed and built by FinTech firm Synechron, the participants were able to communicate and manage test customer KYC data across the Corda network. Banks were able to request access to customer KYC test data, whilst customers could approve requests and revoke access. Customers were also able to update their test data which was then automatically updated for all banks with permission to access it.
David E. Rutter, CEO of R3, said that KYC requirements present a significant challenge to financial institutions and the process is often slow and time-consuming.
“As our corporate membership continues to grow, there has been increasing demand for blockchain-based KYC solutions,” Rutter. “Not only does this project demonstrate how blockchain can allow institutions to retain control of and manage their own identity, but it also validates the design choices we made in our approach to privacy on Corda.”
R3 claims that Corda’s self-sovereign model allows corporate customers to create and manage their own identities including relevant documentation and then grant permission to multiple participants to access this data. By eliminating the need for each institution to individually attest and update KYC records, Corda’s self-sovereign model reduces duplication and costs.
Tim Coates, US Blockchain Lead at Synechron, said that the objective of the project is to solve some of the substantial problem statements behind corporate KYC and re-working the KYC utilities of the past.
“The Corda platform solves many of the KYC-specific requirements, and supports gradual network adoption,” Coates said. “Blockchain’s immutability used as a new verification mechanism, and its peer-to-peer nature enabling greater data privacy, are two of the native features that have attracted many in the KYC sector to blockchain.”